Research On The Financial Effect Of “Similar Financial Pattern” Of A Company

With the promotion of the key work of supply side structural reform such as de-capacity,de-inventory,de-leverage,cost reduction and short board,domestic household appliance enterprises are facing higher requirements for optimizing product structure and improving product quality.The underdevelopment of capital market and the restriction of bank credit conditions make the difficulty of financing become the bottleneck restricting the development of enterprises.In order to solve the problem of capital shortage in the development of enterprises and alleviate the restrictions on the development of enterprises by the traditional financing pattern,some household appliance enterprises use their position in the industry to finance the supply chain and occupy the funds of upstream and downstream enterprises in the supply chain free of charge,so as to expand the scale and enhance their strength.This kind of financial pattern is gradually adopted by the majority of enterprises.This kind of financing pattern in which enterprises get the cash of enterprises in the supply chain and obtain interest free liabilities is very similar to the low-cost use of customer funds by financial institutions to carry out their own business or other investments.Therefore,this unconventional financing pattern is called “similar financial pattern”.A company is a leading enterprise in the household appliance manufacturing industry.On the premise of its strong brand advantage and its core position in the supply chain,A company uses the similar financial pattern for financing.Firstly,the paper expounds the operation pattern,source of capital and capital use of A company’s financial pattern.Then the paper select the financial data of A company from 2016 to 2020,and use the methods of financial index analysis and comparative analysis to analyze the financial effect of A company’s application of similar financial pattern from the perspective of capital characteristics,profitability,financial performance and financial risk under similar financial pattern.The study found that the similar financial pattern does have certain advantages,which can make the enterprise have sufficient net cash,accelerate cash turnover,reduce capital cost and high utilization rate of financial leverage,but the excessive use of the similar financial pattern will also produce potential risks,mainly reflected in the risk of capital repayment,the risk of capital chain rupture,the risk of core company guarantee,the risk of excessive use of commercial credit and so on.It is suggested that household electrical appliance enterprises should optimize the debt structure to reduce the risk of capital repayment in the process of using the similar financial model;adopt diversified financing methods to reduce the risk of capital chain rupture;pay attention to the credit control of upstream and downstream enterprises to reduce the guarantee risk of core enterprises;expand the value of sales channels to reduce the risk of excessive use of business credit.