Research On The Application Of Dynamic Financial Management Method

There are two aspects for us to proceed the structural reform of the supply side.On the basis of quantity,we can cut the industrial overcapacity,de-stock,de-leverage,lower costs and improve weak links.On the basis of quality,we can promote structural optimization and factor upgrading,release new requirements,create new supply,improve the quality and efficiency of the supply system and enhance the momentum of sustained economic growth.Under the background of the supply side reform,the author of this article starts the analysis from the aspect of “quantity” and conclude that we can make the future business objectives of the enterprises more in line with the general direction of reform and optimize the indicators of the internal management and structure through specific management of the enterprise income and cost.In the meantime,we can also analyze various risks and put forward specific management programs under the uncertainty brought by the supply side reform.Throughout the article are the use of dynamic financial analysis and management methods,in which accompanying by the situational analysis and decision analysis.Dynamic financial management is a universal,comprehensive and practical management method which helps companies manage value movement in production process.The result of the financial management directly affects the target profit,the goal which is to maximize the firm's value.The dynamic management in this paper consists of a series of analysis and research focusing on optimizing and improving objectives.Thus,it is necessary to introduce dynamic financial management in the firm's daily activities.Dynamic financial management not only can improve the outcome of management,but also can monitor the funds,which is an inevitable requirement for enterprises in an uncertain economic environment.The optimal goal is based on the optimal benefit and the optimal structure.The dynamic financial management measures fund efficiency as standards to provide management with fund movement and result-orientated information.It can bring relevant basis for management to make decision and ensure the efficient operation of funds,thereby reducing costs and improve the efficiency of the enterprise.Firstly,this paper uses the dynamic financial management methods to analyze the enterprises' current dynamic objectives.Then we use dynamic management methods to analyze the disadvantages of the enterprises' dynamic objective,put forward specific measures to re-optimize the objective in reasonable way and determine the most optimal objective for the enterprise.Finally,for the situations that the enterprises deviate from their optimal objectives,we mainly use 3 scenarios which are respectively the decrease of the income level,the increase of the dynamic cost and the increase of the static cost to conduct the risk monitoring,put forward the specific improvement to restore the management the objectives and decide the optimal objectives and its feasibility.By giving assistant in analyzing,planning,decision making,we can help enterprises achieve their financial goals,ensuring the safety of the funds,reducing the financial risk and achieving the long-term sustainable development.All the management methods in this paper are refined to the specific adjustment of every dynamic index,which also shows the specific performance of the high operability of the dynamic financial management.