Research On Capital Structure Optimization Of Jichuan Pharmaceutical Company Based On Financial Leverage

In recent years,with the support of government policy,financial service and Innovation Science and Technology,pharmaceutical manufacturing industry has been expanding in scale and adjusting in industrial structure.Business expansion and industrial transformation have led to an increase in the demand for capital by enterprises,resulting in a shortage of capital for some enterprises,the shortage of capital flow makes the capital structure of pharmaceutical manufacturing industry have some problems,such as the mismatch between debt and owner’s equity,the high proportion of short-term debt and the acceleration of capital outflow.The capital structure is the key point of enterprise financing,the reasonable capital structure is advantageous to reduce the enterprise comprehensive capital cost rate,increases the financial leverage income,enhances the company value,therefore,the optimization of capital structure is of great significance.This paper uses case study method to study the case of Jichuan pharmaceutical company.First,it introduces the basic situation of the company,including the operating and financial situation,and then compares the capital structure of the company from the three aspects of the debt structure,the equity structure and the overall structure,at the same time,it calculates the financial leverage coefficient and capital cost,analyzes the problems and causes of capital structure,and finally,optimizes the capital structure of Jichuan pharmaceutical by using the static model and the entropy weight method,and in view of the existing problems put forward optimization suggestions.The main problems in the capital structure of Jichuan pharmaceutical industry include unreasonable asset structure,low debt level,high current debt ratio and high equity concentration.In the light of the existing problems,this paper puts forward some optimization suggestions: to enlarge the scale of assets by merging upstream and downstream companies;Establish the early warning system of capital structure,improve the awareness of capital structure optimization,etc.