Research On Financing Strategy Of PLC Based On Financial Sustainable Growth And EVA

Currently,China's economic growth slows down as the economy entering the” new normal”,reducing the confidence of many firms on growth.Growth management is becoming more and more important.When the growth rate of the enterprise exceeds the actual capacity of its financial resources,it will easily lead to the problem of breaking up the capital chain of the enterprise.On the contrary,if the growth of the enterprise is too slow,it indicates that the enterprise resources are not used in the greatest degree.Therefore,the problem of sustainability can't be ignored in the process of seeking growth.In this paper,the three theories including the financial sustainable growth,the economic value added and the financing strategy of the enterprise are integrated and analyzed so that further explains the correlation between the three theories.In order to provide a reference for corporate financing decisions and help enterprises to solve sustainable growth problems,this paper uses Van Horne's sustainable growth model to calculate the sustainable growth rate of Tsingtao Brewery in case enterprises.Besides,this paper introduces the value measurement index EVA to evaluate the value growth of enterprises,and analyzes and evaluates the appropriateness of existing financing methods based on EVA-SGR financial strategy matrix.In the case analysis,we combine the financing situation of every year with the EVA-SGR matrix,and find that 1993-2001 Tsingtao Brewery's operation and financial policy fluctuate greatly,resulting in a large fluctuation of its actual growth rate.Overall,the actual growth rate of enterprises in this period is higher than that of its sustainable growth rate,but the economic value added of enterprises is less than 0 except a few years,which indicates that enterprises have failed to achieve sustainable financial growth.After 2001,the operating efficiency and financial policy of Tsingtao Brewery were steadily stabilized.The sustainable growth rate of enterprises is gradually matched with the actual growth rate,and its economic value added gradually changes from negative to positive,indicating that it has achieved sustained financial growth.In this paper,through in-depth analysis of the related theories and cases,the final results showed that the requirements of financial sustainable growth can't be ignored,the accumulation of the enterprise is the key to solve the problem of the sustainable growth of enterprises and the source of the funds needed.In addition,the growth of the enterprise should be based on the creation value,that is,EVA>0.EVA-SGR matrix has a certain reference value for the formulation of corporate financing strategy.In practical ma nagement,the matrix can be used as a tool for analysis and evaluation,providing theoretical support for corporate financing decisions.