Study On Debt Risk Reduction Of A Steel Group Corporation

After the global financial crisis in 2008,the steel industry benefited from the quantitative easing monetary stimulus policy implemented by the country,and generally implemented a rapid expansion strategy to increase leverage.Steel production also increased rapidly with the urbanization process.However,in recent years,due to the continuous downward growth of the domestic economy,the projects launched by steel companies in the early stages have gradually been put into operation,and the steel industry has experienced serious overcapacity and imbalances in supply and demand.In 2015,the Ministry of Industry and Information Technology released data showing that my country's steel industry entered a general loss state.In2016,steel companies generally suffered from double production and sales,steel prices continued to fall,and corporate assets continued to decline.And further caused problems such as large losses,high asset-liability ratios,and difficulties in financing,and the steel industry experienced a whole industry crisis.The iron and steel industry is a heavy-asset industry in the secondary industry.It has a large asset volume,absorbs a lot of labor,and has a wide range of product applications.It has an irreplaceable role in other industries and is a pillar industry in the national economy.The current crisis facing the steel industry will be further transmitted to the upstream and downstream industries.At the same time,because the debts of steel companies are mostly bank loans,it will also cause risks to financial institutions.As a result,the country issued a supply-side institutional reform strategy,and proposed to "three go one drop one supplement" as a key task.During the operation of an enterprise,it generally chooses to carry a certain amount of liabilities and use certain financial leverage to provide funds for the enterprise and bring excess returns to shareholders.However,once the scale of debt is out of control,especially in a poor market environment,it will bring risks to the company's operation.As a heavy asset industry,the steel industry is more inclined to use higher financial leverage,and the steel industry needs to effectively control its own debt risk.On the premise of in-depth understanding of A Steel Group Company,the article conducted a comprehensive analysis of various financial indicators of its 2015-2018 financial statements.To study the many risks faced by its debt management under the new economic form and new policy structure,and use the Z-score model to quantitatively evaluate and analyze the corporate debt risk.Analyze the causes of A Steel Group's excessive debt risk,and refer to the measures of other companies in the industry according to the causes of the problem,and put forward targeted principles,strategies,and safeguards to resolve A Steel Group's debt risk,with a view to A Iron and Steel Group Company effectively resolves its own debt risks,provides a set of effective measures and suggestions,and also provides useful ideas for other steel companies to control the operational risks of liabilities.The article only conducts research on the debt problems of A Steel Group Company,and does not involve strategic issues.