On The Sustainable Growth Of Company TH With Financial Perspective

In the fierce market competition, growth is a tempting word, especially in China where the majority of enterprises are in their relentless pursuit of rapid growth. Admist the rapid growth, the resource allocation problems, especially the coordination and allocation of financial resources in enterprise are always being overlooked, which leads to serious deficiency in the enterprise financial resources as well as financial crisis. Such rapid growth is the barrier to sustainable development. We are faced with a important task that whether the growth could leverage the financial resources with proper balance and coordination so as to avoid the financial crisis admist development so as to ensure the sustainability of the growth. Such is also a key focus of any company management.Higgins model and Van Horn model are the most representative and influential model in the sustainable growth theroy. Restructuring of the sustainable growth mode could be achieved based on the analysis of these two models. By reconstructing the sustainable growth model, the analysis on financial factors that affect sustainable growth and sensitivity analysis of the changes in financial factors could be performed. It can help companies choose their own financial strategy for sustainable growth, and also provides a quantitative analysis for investors and managers, who could have detailed and thorough analysis of corporate financial information and capturevalid and effective information to judge the quality of a company’s sustainable growth. This is of great practical significance.This essay defines the relevant concepts, elaborates on the theoretical connotation of sustainable growth, and gives an overview of the research status. It is necessary to analyze the relationship between the sustainable growth of enterprises and the actual growth through detailed financial line item analysis, DuPont financial analysis,and a grasp of the company’s financial position and operating results. This essay restructures the sustainable growth model and provides sensitivity analysis of the relevant factors of the model with financial perspective. The sensitivity analysis of five factors of the restructured model can help us understand the different aspects of the sensitivity of the five factors, so as to boost the reasonable use of the five factors and proper planning. It could also assist in making responsive actions to the soundness of growth rate based on the five-factor sensitivity perspective during and after the business cases. Finally,this essay propose that, if the enterprise development strategy has been changed, the use of to restructured sustainable growth model to develop appropriate financial strategy could help in the growth and financial resource coordination, allocation, avoidance of financial crisis, so as to ensure the sustainability of corporate growth.The empirical research, in-depth analysis of sustainable growth model of financial management tools in this essay could help enterprises control the growth of enterprises and the ability to balance the financial resources as well as coordinate financial resources in order to avoid financial crisis in growth, ensure the sustainable growth.