Study On Capital Structure Optimization Of Yango Group Co.,Ltd

The real estate industry is a leading industry in economy and is closely related to our lives.In order to meet the enterprises' development needs,most real estate companies choose debt.However,long-term debt not only leads to the imbalance of enterprises' asset structure,but also decreases enterprises' value.Moreover,it brings national financial risks,affecting the harmonious and sustainable development of the social economy.Enterprises' capital structure in the real economy determines their own operational capabilities levels.Therefore,it is significant for real estate enterprises to pay attention to their own capital structure.Capital structure reflects the source and proportional relationship of a company's funds.Based on modern capital structure theories and the research status of capital structure in real estate industry at home and abroad,this paper takes Yango Group Co.,Ltd as the research object and compares the financial status,debt structure and shareholding structure of the enterprise through vertical comparison of its annual data,proposing some problems of capital structure in Yango Group Co.,Ltd,like excessive debt scale,unreasonable debt structure,single financing method and insufficient working capital.By comparing the financial status,debt structure and shareholding structure of the benchmark enterprises in this industry,entropy method is used in static and dynamic ways to predict the optimal capital structure range of Yango Group Co.,Ltd.Meanwhile,considering its self-development,this paper proposes a specific plan for the company's capital structure optimization,including steady reduction of asset-liability ratio,balance of long-term and short-term liabilities ratios,adoption of multiple financing methods and improvement of working capital management efficiency.To ensure the implementation of the optimization plan,corresponding measurements need to be taken,such as set up of risk response team,improvement of the group's operating efficiency and incentive mechanism,and so on.The optimization plan proposed in this paper will enable Yango Group Co.,Ltd to rationally optimize the allocation of resources,improve the capital operation capability,reduce the debt ratio,fully motivate the enthusiasm and initiative of the employees who will achieve the goal of maximizing the value of the enterprise and ensure the enterprise's sustainable and stable development.The last but not least,this paper also provides a reference for similar real estate enterprises in small andmedium-sized in China to optimize their capital structures.