Research On Financing Strategy Of S Company Based On EVA-SGR Matrix Model

The ultimate goal of an enterprise is to maximize the wealth of shareholders.To achieve this goal,it is necessary to make full and reasonable use of funds to achieve the growth of enterprise performance and create value for the enterprise.In this process,too fast or too slow growth of performance is not the optimal choice.Enterprises need to choose the appropriate growth rate according to their own financial situation and market conditions,so that enterprises can achieve sustainable and stable development on the basis of value creation.Obviously the value creation and development of the enterprise cannot leave the capital support,then how to obtain sufficient funds to become enterprise important to solve the problem,requiring companies when choosing financing strategy is to be able to match the current development speed,meet the demand of enterprise funds,but also can bring value to the enterprises increase,earnings growth.Therefore,this thesis combines economic value added and sustainable growth to analyze the financing strategy of enterprises.This thesis takes Company S as the research object to study its financing strategy.First of all,the relevant theories of EVA-SGR matrix model are elaborated,and the relationship between the model and financing strategy is studied,which lays a theoretical foundation for the following research.Secondly,based on the financial data of Company S from 2016 to 2021,this thesis analyzes its financing status from two aspects: internal financing and external financing,and finds that the proportion of external financing is relatively high,while the internal financing capacity is weak.Thirdly,the thesis analyze Company S’s value creation and causes in the past six years by calculating its economic value added,and analyze Company S’s growth rate in the past six years by calculating its sustainable growth rate.Then,by comparing the sustainable growth rate of Company S with the actual growth rate,this thesis analyzes the development speed and capital demand of Company S.Through research,this thesis finds out that Company S relies heavily on debt financing when it is short of funds,has a low earnings retention rate,fails to adjust financial policies in time when it is surplus,and blindly pursues high-speed development in the financing process.Finally,based on the research results of EVA-SGR matrix model,optimization suggestions are put forward for Company S: timely carry out equity financing when capital is short,attach importance to the accumulation of internal funds of the company,reasonably control the development speed,focus on the company’s existing business instead of continuous expansion,and expand financing channels.Through the research and analysis of this thesis,it is found that the EVA-SGR matrix model can match with the formulation of Company S’s financing strategy,and to a certain extent,the EVA-SGR matrix model has a strong guiding significance for the selection and formulation of its corporate financing strategy.