Research On Financing Problems And Countermeasures Of Huawu Co.,Ltd

Capital plays an irreplaceable role in the production and operating activities of companies.The stability of the source of capital is an important guarantee for companies to realize sustainable operations.Currently,Huawu Company is actively expanding its business field.Project construction and technological innovation require a lot of capital investment,and the capital situation directly affects the business development of the company.Therefore,it is inevitable to investigate the financing problems of Huawu Co.,Ltd.and take measures to promote the sustainable development of the company.Based on the financing theory and combined with the financial status of Huawu Co.,Ltd.,this paper examines the problems,causes and countermeasures in the financing activities of Huawu Co.,Ltd.First,it makes an objective investigation and data analysis about the financial status of Huawu Co.,Ltd.It is noted that the following problems exist in the financing business:(1)Compared to the average external financing rate and the internal financing rate of the same industry,the level of internal financing is low;(2)Debt financing is mainly bank loans and indirect financing accounts for a large proportion;(3)The financing rules do not fully comply with the theory of priority financing,the proportion of short-term loans in bank loans is large and the capital structure is unreasonable;(4)Large and inefficient use of circulating assets.Based on an understanding of the company’s internal and external environment,this paper analyzes the following reasons:(1)Profitability affects the improvement of the company’s internal financing level;(2)China’s capital market environment is the external reason why companies prefer short-term loans and uniform financing arrangements;(3)The unreasonable capital structure is mainly influenced by internal and external factors such as the type of corporate financing and the capital market environment;(4)The management of working capital is conservative,which reduces the efficiency of the company’s capital use.Finally,in combination with the actual situation of the company,the following countermeasures are proposed:(1)Improving the internal financing capacity of the company in three aspects: strengthening the management of receivables,asset fund management and improving the profitability of the company;(2)Improving the capital structure of the company in three aspects: reducing the share of short-term financing,coordinating equity and debt financing and expanding the external financing area;(3)Optimize the company’s working capital management from three aspects: capital planning,comprehensive budget management,and strengthening relevant asset management.