An Analysis Of Improving The Profitability Of LD Company Based On Financial Strategy

As an important part of traditional manufacturing,motors have been widely used in various fields of the national economy.The level of motor manufacturing has directly determined the quality and economic benefits of the national economy.State-owned large-scale motor manufacturing enterprises have occupied a major position in China’s motor manufacturing industry.Their development has played a decisive role in the development of China’s motor industry.However,due to the sluggish world economy,sluggish domestic and foreign markets,and global industrial shifts,traditional manufacturing profits have fallen sharply and are facing severe challenges.These traditional manufacturing companies have suffered from falling profitability,especially in the motor industry.Whether the problem of profitability of these companies can be solved directly determines whether the company can achieve long-term development.Therefore,it is of great significance to study the profitability of state-owned large-scale motor manufacturers and provide them with solutions to improve their profitability.This article firstly describes the research background and significance of this article in the introduction part,introduces the domestic and foreign literature review,relevant theories used in the article,and the research content and methods of this article,and proposes the overall thinking of profitability analysis based on financial strategy.Then,this article briefly analyzes the characteristics and development status of the motor industry and wind power industry,and lays a foundation for the in-depth study of LD company.In the case section,this article firstly introduced the basic situation and financial strategy of LD,combined with the basic situation of LD company to construct a profitability financial index analysis system suitable for LD company,and made horizontal comparison with profitability indicators of the leading enterprises in the motor industry.The use of financial indicators to analyze the status of LD company overall profitability and the status of LD company.Secondly,based on the profitability,profitability,and growth profitability status of LD company,the main problems in LD company profitability were identified,including excessive period expenses,uneven profitability of subsidiaries,weak research and development,and repayments.Long cycle and other four aspects.From this perspective of financial strategy,this paper analyzes in detail the principal causes of these problems,including the defects of expansionary investment strategyradical financing strategy,shortcomings in business strategy,and lack of budget management.Finally,this article addresses the problems and causes of LD company profitability.From the three aspects of financing strategy,investment strategy and business strategy,we determined the LD company’s financial strategy optimization objectives and formulated a financial strategy optimization plan based on the optimization objectives.In terms of financing strategy,LD company must adopt a time-matching financing strategy and expand financing channels to reduce financing risks.In terms of investment strategy,LD company must adjust its diversified investment strategy to focus its investment on small and medium-sized motors and overseas markets,while LD company must increase its R&D investment to enhance its core competitiveness.In terms of its business strategy,LD company must adopt a market-leading remuneration strategy to attract talents to the company’s development,establish a credit evaluation system and a comprehensive budget management system,and increase the working capital flow to control the cost of the company.