Study On Financing Strategy Of A Large-scale Electrical Equipment Company

The large-scale electrical equipment company is engaging in manufacturing turbine units, power turbogenerators, and wind power equipments. There are some important deficiencies in it’s financial management, such as heavy floating debt, low long-term liabilities, high pressure in cash flow and operation management, constant outflow of cash flows from operating activities, and increasing fund requirement. The present thesis aims to make a tentative study and provide some reference in designing practical financing strategy for the company.The thesis first introduces the importance of financing strategy and illustrates the methods and operating procedures. The second, it makes a deep study of five aspects, which are:financing motivation, influencing factors and alternative methods, demands and term structure, estimation of cost difference, and measurement of holistic risk, then selects methods or tools and creates models for study. The third, by analyses those five aspects, with estimation, measurement, and comparison, it brings out the optimum financing strategy. Finally, it proposes the practical financing strategy for the electrical equipment company.