Listed Companies' Financial Security, Working Capital's Efficiency And Sustainable Growth Potential

Since the second half of 2007, the global economic situation began to decline and fell into the through from prosperity. Many listed companies invested a large number of funds to the market in the boom period, but the sub-prime crisis in America swept the world, producing much trouble for many enterprises to recover their investment. Enterprise's financial security in the crisis suffered a tremendous test, first of all, if an enterprise's investment can not be recovered as soon as possible, the funding chain will be broken, then it will meet a shortage of funds measuring the short-term solvency of the enterprise, in the end the debt crisis would lead to serious consequences or even bankruptcy; Secondly, although the majority of enterprises in the current crisis suffered a heavy blow, there are also some enterprises that not only have a smooth response to the crisis, but in the meantime accumulate more wealth, which is a kind of counter-cyclical financial strategic approach. The paper conducts a financial security analysis of A-share listed companies from 2006 to 2008 (excluding financial sector) and respectively compares the financial risk situations in the boom and the low period using the static and dynamic indicators; whether corporate financial is safe or not, the extent of financial risk is decided by the efficiency of working capital and working capital to represent the corporate solvency and liquidity is the most liquid of capital. That the efficiency of working capital is weak indicates cash flow situation is poor, which would be prone to the risk of breaking the chain of funds, making the enterprise's financial security not compliance. Both the enterprise's financial security and the efficiency of working capital will eventually produce effect on corporate sustainability and growth potential.Through analyzing the financial security, working capital efficiency and sustainable growth potential of the A-share listed companies (excluding financial sector) from 2006 to 2008, this paper describes the different policy trends in the period of prosperity and downturn. Finally the paper selects the real estate business reacting strongly to the economic cycle to do a special analysis and concludes that the financial security and higher working capital efficiency is the effective measure for the corporate to deal with the economic crisis so that it will not affect the sustainable growth ability.