A Study On The HL's Financing Decision Based On The Sustainable Growth Model

In order to maintain a certain rate of growth for enterprises,enterprises can not be without the support of financial resources,the financial resources which gather can achieve through the financing.For enterprises,financing has a variety of ways,different development goals may have different options to financing strategy.Sustainable growth is a dynamic equilibrium between enterprise growth and financial resources,and it is scientific and reasonable to take sustainable growth as the long-term development goal of enterprises.Therefore,how to combine the actual operating status with the financing mode,how to choose a scientific and reasonable financing strategy so as to realize the sustainable growth of the enterprise is exactly the core issue of the paper.The purpose of the paper is to analyze the problem of sustainable growth and financing strategy,to find out the intrinsic relationship between sustainable growth and financing strategy,to choose the financing strategy based on sustainable growth,so as to provide some theoretical research and business practice for a certain field reference.It adopts literature research method and case analysis method,chooses HL company as the object of case analysis.At first,it analyzes and summarizes the theory of sustainable growth and financing strategy,and explores the inherent relationship between sustainable growth and financing strategy.Secondly,based on the investigation and data analysis of HL Company,it analyzes the current financing strategy of HL Company,including the endogenous and exogenous financing.Then,based on the above theoretical research and practical analysis,it proposes that using Higgins sustainable growth model analyzed the application of HL company and finding out the problems of its current financing strategy,and comparing and analyzing the application results based on the sustainable growth model.Finally,according to the application of the sustainable growth model and HL company's financing strategy,based on the differences between sustainable growth rate and actual growth rate,HL Corporate Finance Strategy based on sustainable growth puts forward in a targeted manner,so as to provide some feasible suggestions for HL Company and related enterprises in this field.Based on the model of sustainable growth,the paper draws the conclusion that when the sustainable growth rate is greater than the actual growth rate,the financial resources of enterprises have not been fully utilized.Enterprises should firstly use internal financing to make positive ettorts to increase the actual growth rate,so as to achieve sustainable growth level.When the sustainable growth rate is less than the actual growth rate,the enterprise should firstly use external financing,from the sales of net interest rates,total asset turnover,retained earnings,equity multipliers and other sustainable growth model of various indicators,strive to improve the whole growthrate ofenterprises,so as to keep it in line with the actual growth rate.