Research On Financial Leverage Effect Of SYJB Company

With the development of China's real economy,the operating environment faced by auto parts manufacturing companies is becoming more and more complicated.Debt financing has become a routine means of business development.At the same time,the company has also used financial leverage to reduce the financial burden of the company.The role of financial leverage has two different effects,and companies can enjoy the benefits of financial leverage but also face the financial and operational risks that may arise.At the same time,due to the blind expansion in the auto parts manufacturing industry and the homogenization of products,this has affected the company's operations to a certain extent.Therefore,helping the company to rationally formulate capital structure and development strategy according to its own business conditions and rational use of financial leverage can help the company to reduce the negative effects of financial leverage while maximizing the positive effects of financial leverage..Therefore,how to fully and effectively exert the positive effect of financial leverage,reduce the financial risks and operational risks faced by the company,and maximize the operating income of the company is the main research goal of this paper.This paper selects SYJB company for analysis.In the analysis of SYJB's financial leverage effect,it first defines the related concepts of financial leverage and financial leverage effect,and uses literature induction method and theoretical and practical research methods to analyze the current situation of SYJB debt financing.Explain and analyze from the overall and specific perspectives.On the basis of explaining the capital structure of SYJB and the status of financial leverage,this paper studies the financial leverage effect of SYJB in the past five years and analyzes the factors affecting financial leverage from the external and internal perspectives of SYJB,and focuses on the financial aspects of SYJB.In the case of leverage to exert negative effects,the proposed countermeasures are proposed to promote SYJB's rational use of financial leverage and maximize the company's revenue.