Research On Optimization Of SPM Company’s Financing Structure Based On Sustainable Growth

In recent years,new material industry in China has realized rapid development under the supporting of relevant national policy.As a new material of precious metals company,SPM had several years of rapid growth in recent years.But the factors such as single financing channel,excessive dependence on short-term bank loan,cash flow nervous,are not conducive to the company to achieve sustainable growth.This paper takes SPM Company as the case object.The aim of this thesis is to realize the sustainable growth of SPM company,through studying the financing structure problems and providing optimization measures.Furthermore,it attempts to provide a certain reference for the development of related industries.Firstly,this paper combs the concepts and theoretical models related to sustainable growth theory and financing structure.Then it uses Fan Xing Jian sustainable growth model for SPM sustainable growth in recent years and its influencing factors are analyzed.It finds that the company growth unstable and speeding growth problems in recent years.The reasons are,on one hand,because the company implemented a expansion strategy,on the other hand,because the company’s current financing structure is unreasonable.It is mainly manifested in the company’s low profitability and low capital use efficiency resulting in the company’s weak internal financing ability.The change of industry environment and related policies affect the company’s application of equity financing,which result in a high degree of ownership concentration.The management’s neglect of the importance of financing structure results in the company’s excessive reliance on debt financing.The increase in operating financial risks and the company’s working capital demand lead to a high proportion of short-term debt financing.The external capital market is not perfect and the internal financing planning is unreasonable,which lead to the company’s reliance on bank loans.Financing channels are too single.The rapid growth of the company’s cash flow volatility.Capital flow situation is relatively tight.Then it divides into the short and medium term to optimize the current unreasonable financing structure of the company.For recent financing structure optimization,this paper use the sales percentages method predicting the company next year financing aggregate demand.According to the grey linear programming model and Fan Xing Jian sustainable growth model,it constructs the objective function and establishes the relevant constraints.Finally,it uses MATLAB software to solve specific kinds of financing mode of financing.For medium and long-term financing structure optimization,it constructs the EVA/SGR matrix model,which further interpret the financing predicament faced by companies and the value of the company’s rapid growth to create conditions in recent years.The suggestions include improving operational efficiency,improving internal financing ability,suitable for equity financing,optimizing the equity structure and reasonable arrangement of the maturity structure of debt financing,optimizing the financing structure of expanding diversified debt financing channels.Finally,this paper puts forward suggestions of effectively optimize financing structure measures,which include setting reasonable operation strategy,improving the company’s financing decision process,improving the corporate governance structure and internal control system.