Research On Relationship Between Profitability Of Z And Capital Structure

All the time,coal enterprises have been played an important role in the development of the national economy.Due to their high capital investment,they have many problems such as high equity concentration,higher liquidity debt than long-term debt,and preference for equity financing.At present,the world’s coal is in an oversupply situation.Under the global environment,environmental protection policies are becoming stricter and the optimization of energy structure affects the entire world.In the domestic coal market,foreign imports are much higher than domestic exports.Coupled with the impact of the domestic economic downturn,coal demand has dropped significantly.Chinese coal companies have suffered huge economic losses and their overall profitability is not strong.In this context,only by continuously improving the company’s internal capital structure and increasing its own profitability,Company Z can achieve long-term development under fierce competition.Based on the research foundation of traditional capital structure theory and modern capital structure theory,this paper uses the research results of trade-off theory,prioritized financing theory and signal transmission theory,through literature survey,quantitative analysis,and empirical research methods,from the equity structure,debt structure,From three perspectives of internal financing structure,it explores the theoretical research on the impact of corporate capital structure on its profitability.Next,take company Z as an example to introduce the company’s development and operation.Based on the current status of company Z ’ s capital structure and profitability,analyze the impact of company Z’s capital structure on its profitability and draw correlation assumptions,and then use SPSS software System,construct the data model,obtain the empirical analysis result of the relevance of Z company’s capital structure to its profitability.It is concluded that there are areas that need improvement in company Z’s equity structure,debt structure and internal financing structure,and a series of suggestions on improving corporate profitability by optimizing capital structure.The results of the research show that the concentration of the top ten shareholders and the largest shareholder of Z company is beneficial to the enhancement of Z company’s profitability.The debt-to-asset ratio of company Z has an inverse correlation with profitability,which is manifested as a high debt-to-asset ratio hinders the improvement of corporate profitability;the proportion of short-term liabilities to liabilities has a negative correlation with the improvement of profitability.In response to this result,this article proposes to optimize the internal equity structure of the enterprise and increase the concentration of equity;rationally adjust the corporate asset-liability ratio and improve the corporate liability structure;coordinate financing models and increase the diversification of corporate financing methods.