Several Strategies For Raising Financial Management Of Enterprises

< p > < strong > 1. The concept of financial sustainable development rate < /strong > < /p >

< p > enterprise sustainable > a href= "http://www.91se91.com/news/index_c.asp" > growth rate < /a > is the maximum ratio of sales that can be increased without the exhaustion of enterprise financial resources. It is a comprehensive financial index, reflecting the growth ability of enterprises under current management level and financial policy.

Sustainable growth rate = (sales net interest rate * total assets turnover rate * retained earnings * interest multiplier) / (1- sales net interest rate * total assets turnover * retained earnings * interest multiplier).

The idea of sustainable growth does not mean that the growth of enterprises can not be lower or higher than that of sustainable growth.

The management of a company should anticipate and solve all kinds of financial problems caused by the company below or exceeding the sustainable growth rate.

Any enterprise must control the growth of sales, so that this growth can be balanced with the financial capacity of the enterprise. It is not blindly follow the market.

The growth of enterprises is occasionally fast and occasionally slow, but in the long run it will be restricted by sustainable growth rate, that is, sustainable growth rate as a standard for sustainable financial growth.

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< p > < strong > two, improving enterprise < a href= "http://www.91se91.com/news/index_c.asp > > financial management < /a > strategy < /strong > /p >

< p > business efficiency and financial policy are the main factors that affect the sustainable development of finance.

The sustainable growth rate of finance is all growth that produces balanced growth, but the problem of sustainable development of finance is to adjust the deficit or surplus caused by unbalanced growth, and then adjust the difference of growth rate.

In the planning period, the emphasis of financial sustainable growth is balance, not continuous improvement, and the consistency of financial sustainable growth and actual growth. This is the measure of growth management.

In order to strengthen the management of enterprise finance, we must first analyze the factors that affect the sustainable development of enterprises according to the external conditions and internal conditions of enterprises, such as macroeconomic environment, core competitiveness, industry factors and the life cycle of enterprises. Secondly, we analyze the influencing factors of sustainable growth rate, formulate the objectives of the next year, determine whether they are low speed growth or high speed growth. Finally, we will take measures in advance to achieve the goal of sustainable development of enterprises according to the results obtained after comparison.

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< p > 1. low speed growth strategy < /p >

< p > < < a href= > http://www.91se91.com/news/index_c.asp > recycling stock > /a > enhance control.

The stock repurchase must be approved by the general meeting of shareholders. The funds obtained from the company's financing outside the company can be purchased or sold as treasury stocks at a certain price.

By reducing the number of stocks outside, increasing earnings per share, reducing P / E and driving up share prices.

Dividends can also be issued to reduce excessive retention of funds.

If the growth rate of sales is smaller than that of the sustainable growth rate, the cash of these enterprises is an excess state, which can increase dividend payments, thereby reducing the accumulation of funds.

However, if the money is returned to shareholders, it means that managers do not find opportunities to gain profits, so some managers are resistant to such measures.

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< p > investment or acquisition can be used to make full use of excess capital.

The lack of company growth indicates that managers have not made full use of the existing financial resources.

Investment or buy back can reconfigure financial resources, so as to make profits and increase sustainable growth rate.

Management has put excess funds into other industries and diversified development.

Enterprises can also invest in new projects, reduce idle funds, and find new development projects.

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< p > 2. strategy of speeding up growth < /p >

< p > (1) can increase the proportion of liabilities.

For enterprises with strong profitability and fast turnover of capital, the actual growth rate is larger than the sustainable growth rate, which can raise the asset liability ratio.

It can also reduce the dividend payout rate and retain more net profit inside the enterprise.

Reducing dividend distribution will increase retained earnings and increase the capital supply of enterprises.

However, the maximum retained earnings rate can only reach 100%. In general, the interest of shareholders in dividend payments is greater, and the less they invest in the company.

If the company's investment opportunities are not able to guarantee good returns, shareholders will be very angry about the rate of payment to reduce the dividend, leading to a drop in the stock price.

New stock can also be issued. When an enterprise can increase the number of shares, its financial sustainable development problem will be solved. The new capital will provide sufficient funds for enterprises. Moreover, with the increase of equity capital ratio, enterprises can also increase liabilities if the capital structure remains unchanged, all of which provide cash resources for the growth of the company.

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< p > (2) can increase the turnover rate of assets.

If the enterprise can not support the sales growth of enterprises and optimize the composition of economic resources under the current financial policies and operational efficiency, then the speed of asset turnover can solve the problem of insufficient funds of enterprises.

The way to optimize the economic resources of enterprise assets is to optimize the allocation of resources and the stripping of non core businesses.

The resources of an enterprise are limited, and it is impossible to form strong competitive power in many fields at the same time, sometimes it can only act as follower, so that the resources of enterprises can not play the best utility.

When resources are dispersed in many different fields and can not compete effectively, the risk of becoming a second-class player is greater.

Therefore, to withdraw funds into the core business of enterprises and carry out the "non core business divestiture" can be used to solve the growth problem.

By stripping off non core businesses, excess cash will be generated to support growth and reduce some low quality sales revenue to control growth and increase asset turnover.

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