CAN We Get Through The Business Downturn?

In April 2016,China institute of fiscal science and technology launched a large-scale survey on "enterprise cost and burden".Among them,the sampling survey was carried out in some enterprises in northeast provinces in China.The survey results show that the economic growth rate of northeastern provinces has declined in recent years,.According to statistics,in China's top 500 manufacturing enterprises in 2017,there are only 17 in northeast China,three enterprises are reduced in the same period,and the other five have been reduced.Large manufacturing enterprises to reduce the constant proof in northeast China's economy has stalled.In April 2016,the standing meeting of the state council adopted the “planning for standardization and quality improvement of equipment manufacturing industry”.It's required to interface with the “Chinese manufacturing 2025”.The standard system of equipment manufacturing which is a system supporting and service industry cross-boundary integration should be basically sound.And Significantly enhance international influence on equipment manufacturing.This is a key period about upgrading for equipment manufacturing enterprises in northeast China.The part of "Supply-side" reform,optimization of industrial structure will eliminate enterprises with low monetary benefit and weak competitiveness.How can the financial personnel do to help the enterprise survive in the current downturn-market is a very important issue that managers should be considered.The article uses YT company which is a northeast equipment manufacturer enterprise as the research object.Based on financial analysis,using the financial risk early-warning model to test the financial risks,and determine that the firm is in the recession.It is under a higher financial risk.In order to find out the cause of firm's recession and financial risk,article uses the Harvard Analytical Framework to do a specific financial diagnosis,include in strategic analysis,accounting analysis,financial analysis,and prospective analysis.It can find out significant causes for the ongoing mismanagement of the enterprise.Mismanagement caused by lower on fixed asset utilization rate,high cost of manufacturing and overhead,lower technical content and difficulty of capital turnover.For these reasons,in order to pull out of the YT company in plight,article suggest manager to classifying fixed assets disposal to improve the utilization rate of fixed assets,establishment of a comprehensive budget system to compress the business enterprise cost,improve production technology level to enhance production efficiency and expand business scope and financing channels to seek new sources of funds activity etc.