Study on Solvency of Enterprises

Take N Company as an example

Abstract

Manufacturing industry directly reflects the productivity level of a country, is an important differentiating factor between developed and developing countries, accounting for a considerable part of the economy of developed countries. Manufacturing industry development in China's economic construction play a gradual increase in economic influence. The assets of the manufacturing industry are complex, diverse and liquid, and the liabilities will increase accordingly. The solvency of the enterprise is the focus of the expected users of the internal and financial statements to the enterprise. Under this background, enterprises pay more and more attention to the analysis and solution of their own financial problems. Debt paying ability has become the core problem in modern enterprise financial management and is the most basic aspect of financial analysis. Under the trend of modern external financing environment, more important is the ability of enterprises to repay debts. The analysis of debt repayment ability can make more scientific decisions on financing and investment, realize the flexible use of capital flow, and strengthen the daily business activities of enterprises. This paper theoretically expounds the influencing factors, analysis purpose, financial indicators and non-financial indicators of corporate debt paying ability. Based on the financial data provided by N Company, this paper studies the company's solvency from a number of solvency evaluation indicators, and then analyzes and dissects its problems and causes. Finally, through comprehensive analysis and integration judgment, some suggestions are put forward for the company to determine the solvency of the enterprise through which ways.