Life-cycle-based Financial Strategy Analysis

In recent years,China's economic environment is still stable,but compared with the previous period of rapid development,economic growth has gradually slowed down.According to the report of the 19 th National Congress of the Communist Party of China,China's economy has gradually moved away from the stage of high-speed growth and towards the stage of high-quality and quantitative development.Therefore,the most common entity manufacturing enterprises in China are in urgent need of optimization and transformation.Financial strategy is a reasonable plan for enterprise capital activities,which is related to whether the enterprise can correctly handle the financial relationship and achieve sustainable development.In recent years,the development trend of traditional manufacturing industry has changed dramatically.Fierce competition makes enterprises pay more attention to the field of management and financial strategy.In this competitive environment,only through the formulation and implementation of efficient financial strategy can enterprises ensure their long-term development.After years of development,Guizhou GH Auto Parts Co.,Ltd.has become a representative enterprise in China's auto parts market.With the help of national and government policies,it adheres to reform and innovation,and has become a leading enterprise in the industry.Guizhou GH company has been committed to the transformation and upgrading of the enterprise in the new development period.Therefore,according to its current life cycle stage,it is very important to select the financial strategy in line with the law of enterprise development.In the critical period of transformation and upgrading,enterprises are facing different financial situations,and the problems in financial strategy also affect the development of the company.From the perspective of enterprise life cycle theory,this paper combines the characteristics of different life cycles with the choice of financial strategy.On the basis of collecting the required analysis data,this paper establishes the way of financial strategy analysis and studies its financial strategy.First of all,this paper reviews and summarizes the research process of literature at home and abroad,and then through quantitative analysis,it finally judges the current position of the enterprise in the cycle stage,and concludes that Guizhou GH company is in the mature stage of the enterprise life cycle,but is about to enter the recession stage,so the financial strategy transformation is imminent.Then,according to the characteristics of the maturity period,the development process and the internal and external environment of the company,the current financial strategy of the company is analyzed according to the research path of financial strategy.It is found that the financing strategy of the company is relatively conservative.In recent years,it almost does not choose long-term debt financing,but only uses commercial credit financing,But it may also bring some financial risks.In terms of investment strategy,the data show that GH company in Guizhou has more internal investment and less external investment.In recent years,GH company has gradually stripped off external investment and has narrow investment channels.In terms of dividend distribution strategy,it adopts the high dividend distribution strategy commonly used by mature enterprises,especially the cash dividend distribution method,but lacks the equity incentive method for excellent talents.In view of the above financial strategy status and room for optimization,this paper puts forward the optimization method of the company's financial strategy.It includes broadening financing channels,optimizing investment direction to improve capital operation efficiency,and establishing flexible dividend distribution strategy,in order to provide feasible strategies for the company to achieve sustainable development,help the traditional manufacturing industry to successfully transform,and move towards a more modern,more suitable and longer-term development path.