The Problems of Capital Structure and Financial Leverage Effect of HHKG

Abstract

The capital structure is the key point that enterprises need to pay attention to in the process of operation. The capital structure of aviation enterprises is different from that of other industries due to the particularity of the industry. Based on the elaboration of domestic and foreign literature on capital structure, this paper analyzes the shareholders’ information and equity structure of HHKG, and further analyzes the existing problems of the capital structure of HHKG through asset-liability ratio and equity capital ratio. Combining the short-term and long-term liabilities, this paper analyzes the solvency ability of HHKG and the excess financial risks it faces, and puts forward some measures to optimize the capital structure of HHKG and prevent financial analysis.