Study On Environment Protection Enterprise’s Sustainable Growth Based On Financial Angle

Since the reform and opening up, China has undergone enormous economic and social change. By the joint efforts of various types of entities, the economic has made great progress. As the market is becoming more competitive, now we have already entered an era of competition. In this time expanding market share has a very important strategic significance of every enterprise, All other problems can be solved if the company has great market share. So the growth problem has become an inevitable question for every company. Due to lack of understanding of the growth theory, lots of enterprise face the problem of which theory of growth to choose and what kind of growth standards to set. Many companies set sales growth targets which do not match their own resources, that causes either blind expansion which eventually deplete the financial resources and bankrupt the enterprise, or too conservative to lose out market opportunities. Enterprise need theory about business growth model and the growth targets, while, the sustainable growth theory just meet this kind of demand. In this case, the sustainable growth theory quickly becomes accepted by enterprise management. Financial sustainable growth model can also help for evaluating the quality of growth as one of the most effective tools for business management. The purpose of writing this article is to analyze the model theory for practical application and show the current enterprise the specific meaning of sustainable development theory. The methods and applications of this theory is important, more companies should pay attention to this theory and the application of this theory if they want to gain a sustainable growth.China’s environmental protection industry is still young and at the starting stage, with the increasing awareness of environment pollution and the importance of national support of this industry, the environmental protection industry will face opportunities blowout. Every enterprise in this industry is facing the realistic and specifically problem of how to growth. The management need correct theoretical guidance on how companies meet healthy and sustainable growth. So this paper selected companies in the environmental industry as the research object, combine the classical theory of sustainable growth and the special industry characteristics for study, in order to meet the real needs of the industry.In this paper, based on a lot of basic theoretical research, we choose Company A for study, and conduct both qualitative and quantitative analysis, theoretical analysis and practical analysis. Firstly we analyze the inference of the traditional financial sustainable growth model (Higgins model, Van Horn model, Rappaport model and Colley model) and analyze their advantages and limitations, after that we introduce the modified sustainable growth model which has a broader range of applications. And then we bring the financial data of this company both into the traditional evaluation of financial indicators and the modified sustainable growth model. We conduct a comprehensive analysis and evaluation on Company A’s sustainable growth rate. Then we use sensitivity analysis method to explain how the driving factors of sustainable growth rate affect Company A. We also explain the cause of the difference between the sustainable growth rate and the actual rate. At last we notice that company A should pay attention to the problem and take further measures to promote its sustainable development.The main innovations of this study are as follows:bring forward two non-traditional indicators that should be paid special attention to when study the sustainable growth of environmental protection industry, introduce the improved sustainable growth model for analysis, summarize the special advise on company A which also make up the lack of research on environmental protection industry’s growth issue.