Research On Financing Strategy Of BYD Company Based On Financial Sustainable Growth

In the new situation of dual-carbon target,this paper takes BYD Company as the research object,uses the sustainable growth model,analyzes its financial sustainable growth ability,determines whether its financing strategy and development speed are reasonable,and explores better financing strategies for new energy vehicle companies under the new development requirements in the new era.Due to the particularity of the industry,new energy vehicle companies are faced with many financing problems.The capital demand is large,the financing risk is high,and the risk of capital chain rupture is easy to occur,so it is necessary to study targeted financing strategies.Meanwhile,this paper can provide certain methods for company managers to learn from,help them make more scientific financing decisions,optimize the allocation of financial resources,and promote the high-quality growth of China’s new energy automobile industry.The growth of enterprises should be based on sustainable goals to achieve a dynamic balance between sustainable growth rate and actual growth rate.Excessive growth is easy to cause a shortage of financial resources,and too slow growth is not conducive to the improvement of corporate profits and full development.This paper analyzes the case enterprises from the perspective of financial sustainable growth,and proposes financing strategies suitable for existing resources and development status.By analyzing the internal relation between financing strategy and financial sustainable growth and the growth target of enterprises,this paper puts forward the view that the choice of financing strategy should be oriented to financial sustainable growth.Under the guidance of this idea,when there is a gap between the actual growth rate and the sustainable growth rate,financial financing policies under different circumstances are proposed.On the basis of considering the actual situation of enterprises,taking sustainable financial growth as the orientation,we should make full use of internal financing,rationally allocate debt financing structure,flexibly use dividend distribution policy,continuously improve operating efficiency,make full use of resources,and achieve sustainable financial growth.This paper studies the development process and financing status of BYD Company,summarizes its financing characteristics,and analyzes the four elements of the model by applying the Higgins sustainable growth model and combining the financial data of BYD Company for ten years.Through calculation,the actual growth rate and sustainable growth rate of the company in ten years are obtained respectively.Based on the analysis of the growth deviation and the reasons for the deviation,it is found that there are specific problems in BYD’s financing strategy that are not conducive to sustainable financial growth,and the corresponding financing strategy suggestions are put forward in view of the two states without sustainable growth.When the actual growth rate is higher than the sustainable growth rate,we should increase the retained rate of return and actively obtain funds,make reasonable use of debt financing and equity financing to broaden financing channels.When the actual growth rate is lower than the sustainable growth rate,it is necessary to moderately reduce liabilities,increase dividend distribution,increase the use of funds raised,and improve operational efficiency.By narrowing the gap between the sustainable growth rate and the actual growth rate to achieve sustainable financial growth.