Research On Financial Strategy Of Gas Industry Based On Financial Strategy Matrix

With the development of our country socialist market economy and the improvement of the capital market,financial management has become necessary to enterprise survival and development,Financial Strategy Matrix based on the EVA value creation theory and the sustainable growth theory which judged the enterprise cash flow condition,it can divide enterprises into four quadrants,they are respectively value added cash shortage,value added cash surplus,impairment cash shortage and impairment cash surplus,it also put forward suggestions corresponding strategic development according to the characteristics of the quadrant of the enterprise in different dimensions.Once the theory was put forward,it was widely concerned and recognized.As an energy industry related to the national economy and people’s livelihood,the gas industry has attracted a large number of foreign investment and private enterprises with the requirements of urbanization,national environmental pollution control and the gradual progress of natural gas price reform,resulting in increasingly intensified competition.This paper adopts the method of combining quantitative analysis and case analysis,after the in-depth analysis of Financial Strategy Matrix content and principle,the paper calculated the sales growth rate,sustainable growth rate,investment return on capital and capital cost index of gas industry of 26 listed companies from 2013 to 2017,built financial strategy matrix.It also analyzes the overall distribution situation and operation rules of listed companies in the gas industry in the financial strategy matrix from the static and dynamic aspects,and then according to the distribution of matrix in2017,select Kunlun Energy in the second quadrant,China Resources Gas in the first quadrant and China Oil & Gas in the fourth quadrant(there is no distribution company in the third quadrant in 2017)as a case study object.The following conclusions are drawn :(1)the gas enterprises are mainly distributed in the first and second quadrant of value growth,and the overall development trend of the industry is rising;(2)the overall operation of gas industry enterprises in the financial strategy matrix follows thespiral-upward development law of realizing enterprise value under the constant adjustment of cash status;(3)case study found that Financial Strategy Matrix state is consistent with the actual financial activities of the enterprise,it is further explained that Financial Strategy Matrix can be applied to gas industry enterprises.Finally,according to the quadrant of the enterprise and the problems existing in the actual development of the enterprise,the paper put forward corresponding suggestions to improve the value of the enterprise and improve the cash situation,to provide reference for other companies in the same quadrant.This paper studies the overall situation of listed companies in the gas industry in the Financial Strategy Matrix and puts forward suggestions of enterprises in different quadrants,which is of great significance to the overall progress of the gas industry and enrich the application scope of the Financial Strategy Matrix.