Over-Indebtedness?Deleverage And Financial Risk Management

The construction machinery industry has entered the trough period since 2011,and its overcapacity and excessive leverage have become the high-risk problems in this industry.The country proposed the supply-side structural reform in 2015,helping to realize the strategic principle of "three cuts,one cut,one remedy".And in this process,because the product manufacturing period is longer,the money collecting speed is slow,the generation of advances can be received in time items,such as part of the construction machinery industry enterprises in the state of excessive debt,the negative effects of leverage,financial risk is high,in response to the national call to "go leverage,capacity",many enterprises spend a lot of time here,to ensure the healthy development of enterprises.First of all,based on the analysis object,sany heavy industry group for risk management theory and based on the theory of financial leverage effect on corporate debt financing situation and income do some analysis,enterprises in the process of from 2011 to 2018,2014 and 2016 corporate income is in a state of decline,and in 2016 need to pay a large loan matured within a year,combines the condition of assets and liabilities,financial leverage coefficient,the model based on the Z value judgment of the financial risk of the enterprise before and after the excessive debt level,in particular,engineering machinery enterprise will exist in the process of operation of a certain generation advance expenditure of money,So at this time,not only large debt pressure,and enterprise's cash flow is particularly hard,especially financial leverage coefficient was 108.14 in 2016,enterprises of the multiple of interest safeguard and only 0.99,as leverage for the negative effects,companies are already in under the condition of excessive debt,bring higher financial risk,is not conducive to enterprise steady development.Secondly,sany took a series of measures in time to take advantage of the stripping of weak assets and revitalize the cash flow.Issue convertible bonds to reduce the coupon rate;In response to "One Belt And One Road",under the measures of changing the business model,it isconcluded that the enterprise has successfully passed the financial risk crisis based on the calculation before and after taking the measures based on the z-value model.Finally,some measures taken by the analysis of enterprises,its own shortcomings or can be improved to help enterprises to solve the source of the financial risk crisis caused by excessive debt.Firstly,the establishment of a relatively complete financial risk management system and early warning mechanism is the most conducive to the development of the enterprise.Secondly,from the perspective of internal control of sany itself,it is mainly to improve the control of the settlement method between suppliers and sales customers and the settlement method between suppliers and sellers,which can help enterprises improve the use efficiency of working capital to avoid financial risk crisis and promote the stable and sustainable development of enterprises.