Research On The Financial Strategy Of STO Express Co.,Ltd Based On The Financial Strategy Matrix

The COVID-19 has impacted all walks of life in China,while the competition in the logistics industry has become increasingly fierce.Although social demand is still increasing,China’s logistics industry is currently in a strategic transition period of slowing growth,environmental changes,and demand adjustment.Therefore,how to choose a suitable development strategy and give play to advantages in the adverse environment and fierce market competition is crucial for enterprises.The financial strategy matrix model can help enterprises analyze their own financial strategies from a dynamic perspective,solve the limitations of traditional static financial indicator analysis,provide reference for formulating enterprise financial strategies and even the overall strategy,and make the analysis results more reliable.As an early logistics enterprise,Shentong has seen a significant decline in its development status in recent years,so analyzing Shentong has reference significance for enterprises of the same type in their own development opportunities.Firstly,it introduces the research background,purpose,and significance,elaborates on the current research status at home and abroad,proposes the research content and methods of financial strategy,and elaborates on the relevant concepts and theories of financial strategy and financial strategy matrix;Secondly,after briefly introducing Shentong Express,analyze its financial information and internal and external environment,and analyze Shentong’s current financial strategy from four aspects: fundraising,investment,operation,and dividend distribution;Once again,extract the data from the financial statements of Shentong from 2017 to 2021,calculate the horizontal and vertical EVA of the financial strategy matrix,and construct a quadrant diagram of the financial strategy matrix.Shentong was located in the first quadrant from 2017 to 2019,in the third quadrant from 2020,and in the fourth quadrant from 2021.Compare and analyze Shentong with two other top and second ranked companies in the industry,SF Express and Yunda,and find that Shentong’s sustainable growth rate has decreased significantly,Insufficient value creation ability.Then,based on the financial strategy matrix,Shentong was evaluated from two dimensions: cash position and enterprise value.It was found that Shentong Express had an unreasonable financing structure in terms of fundraising;In terms of investment,the allocation of internal and external investments is unreasonable and the direction is single;In terms of operations,the allocation of funds is unreasonable;In terms of dividend distribution,the form of dividend distribution is singular and the dividend payout rate is unstable.Finally,based on the evaluation results,the following suggestions are proposed: optimizing the fund structure and expanding financing channels;Implement a diversified investment strategy,and increase investment in scientific research,innovation,and research and development;Optimize the working capital structure and strengthen the management of working capital flow;Diversified dividend payment methods and implementation of employee equity incentive system.Ultimately,the financial strategy is optimized,providing reference for other enterprises in the same industry.