Research On LY’s Financing Strategy Based On EVA/SGR Matrix

The purpose of business operation is to achieve value growth,obtain more benefits,and thus realize the sustainable development of the enterprise.The development of enterprises is inseparable from the support of funds.In reality,most enterprises rely on their own retained earnings to not be enough to support their development,and they need to obtain funds through different methods of financing.Therefore,research on corporate financing strategies is an indispensable part of corporate financial management.When evaluating corporate performance,the Economic Value Added Theory(EVA)fully considers the cost of using corporate equity capital and debt capital.Only when the value created by the funds raised is higher than the cost of financing can the company gain real value growth.At the same time,the company’s capital needs can be judged by the size of the company’s actual growth rate and sustainable growth rate.When the actual growth rate is greater than the sustainable growth rate,the company will have a shortage of cash and external financing needs will appear.There is a close relationship between economic value-added,sustainable growth and corporate financing strategies.This article first takes value growth and sustainable growth as the goal orientation,constructs an EVA/SGR matrix,and analyzes what companies should theoretically adopt in each quadrant Financing strategy to lay a theoretical foundation;then introduce the case company-Huizhou Yiwei Lithium Energy(hereinafter referred to as LY)to analyze its actual financing strategy from 2009 to 2019;then calculate its economic growth based on the relevant financial data of LY Value,actual growth rate and sustainable growth rate,divide the different states of LY company into four quadrants of the EVA/SGR matrix,compare with the financing strategy that enterprises in each quadrant should adopt theoretically,and compare the current financing strategy of LY company to analyze the effectiveness of their financing strategy choices and evaluate the current financing strategies of LY;finally,it is concluded that the EVA/SGR matrix is used to analyze the effectiveness of the financing strategies of high-tech enterprises.In a word,through the combined analysis of related theories and cases,this article proves that in the actual operation and management process of high-tech enterprises,the use of EVA/SGR matrix integrates the goals of corporate value growth and sustainable development,and has a guiding role in the choice of corporate financing strategies which can provide a theoretical basis for enterprise management to make effective economic decisions.