Financial Diagnosis Of AG Steel Company

The industry of Iron and steel is the basic industry of the country.With the rapid development of China's economy,China's steel industry has developed rapidly.Up to now,China has become the world's largest producer and consumer of steel,crude steel production ranked first in the world for sixteen consecutive years,However,in recent years,due to the impact of the financial crisis in recent years,the global economic downturn,China's economic growth rate down too.Steel demand declined sharply,which led to a substantial surplus of the domestic steel production capacity.Iron and steel enterprises have become the country's Primary target of removing excess capacity.Steel prices continue to fall,but the price of raw materials such as iron ore is still high,while the state has continued to strengthen energy conservation efforts,so enterprises have to increase the cost of investment in environmental protection.Iron and steel enterprises operating costs at a high level.High cost and low price has become a common feature of iron and steel enterprises in recent years,and the market competition is fierce.Iron and steel enterprises are facing unprecedented difficulties,many of iron and steel enterprises profit decline,loss,and some even bankruptcy.AG Steel Corp's production capacity is nearly 1000 tons,performed excellent,but in 2012 the first loss.Although the company through the efforts of a successful turnaround,but once again into a loss.In the current steel market is facing a severe test in the background.This paper adopts the method of case study,selection of AG company through the financial diagnosis to help enterprises to find problems,put forward corresponding suggestions,for the company to improve the financial situation,improve capital efficiency,enhance profitability,reduce financial risk,provide reference to promote sustainable and stable development of the company.This article review the related research literature,based on the analysis of the financial environment of AG company,select the relevant financial data from the annual report after the financial crisis of AG company from 2009 to 2015,using the method of financial diagnosis,analyze and diagnose the financial management organization structure,the financial management system and the implementation,the financial situation of AG company,reveals the problems existing in the financial aspects of the company,and puts forward some relevant suggestions.