Research On Financial Sustainable Growth Management Strategy Of X Machinery Company

For a long time,most of enterprises advocate rapid growth.They believe that the faster the sales growth,the greater the market share of the firm.Finally,the higher profits will be.But the rapid development means that companies need to invest more funds and withstand greater financial pressure.Mismanagement can lead to financial crises and even loss of operational capacity.Therefore,it has a certain need for enterprises to achieve sustainable financial growth that using sustainable growth model to analyze corporate financial data,discovering problems in the growth management of enterprise and finding the appropriate management strategy.In this paper,the Higgins model is utilized to calculate the difference between the firm's sustainable growth rate and the real growth rate,based on the financial data of X Machinery Company from 2010 to 2015.Then,the profit quality analysis and the capital structure quality analysis method are introduced to further expound the factors that affect the financial sustainable growth of X Machinery Company.To solve the problems faced by X Machinery Companies in achieving the goal of sustainable financial growth,this paper introduces strategic map to plan the management strategy of X Machinery Company.This paper argues that financial sustainability needs to be managed from both financial and non-financial perspectives,and strategic mapping tools can achieve that goal.When using strategic maps to plan the financial sustainability growth strategy for X Machinery Company,first,they need to strengthen the accumulation of intangible assets at the learning and growth level.Then,they should focus on the improvements of internal key processes.Finally,they must concerned about the construction issues of distribution channel at the customer level.The enterprise should draw a strategic map to describe the strategies of the three levels,so that employees understand their own position in the implementation of the strategy.In this way,the strategies of the three levels can be implemented successfully.The realization of three strategic objectives will promote the balanced use and development of financial resources,so that enterprises to achieve sustainable financial growth in the premise of maintaining growth.In summary,the research of this paper will be able to provide a new way for enterprises to achieve sustained and healthy development.