Research On Optimization Of BDH’s Financing Structure Based On Sustainable Growth

As the foundation of economic and social development, agriculture affects all aspects of national life. As the main body in this field, agricultural enterprise is an important part of the market economy, whose long-term development capacity affects the whole country. BDH Ltd., which is actually held by the Ministry of Agriculture, is the leading enterprise of the agricultural sector. The development of this company has an important influence and reference of the whole industry. Therefore, this paper takes this company as the research object. By optimizing and improving its financing structure, this paper aims to promote the sustainable growth of the company and then provide a reference for the development of the agriculture sector.According to the theory of sustainable growth, it is necessary for the company who wants to achieve the long-term development to ensure that its growth is sustainable, which means that the growth has not run out of the present financial resources. In order to achieve the sustainable growth, the company needs to match the actual growth rate with the sustainable growth rate. Among them, the actual growth rate is generally measured by the sales growth rate and the sustainable growth rate is calculated by specific model. And in order to match the two growth rates, not only can the company adjust the actual growth rate by making the scientific development strategy, but also can improve the sustainable growth rate from the aspect of operating and financing. As a result, this paper firstly analyzes the sustainable growth performance of BDH Ltd. during the last six years. Through comparing its actual growth rate and sustainable growth rate, the article finds that the main problem is the speeding growth. This issue is caused by the company’s previous expansion strategy and it also relates to its financing structure. Subsequently, this paper studies the company’s financing structure and points out the problems which hinder its sustainable development. What’s more, the paper also analyzes the reasons of these problems as well. In order to achieve the goal of sustainable development, this paper optimizes the financing structure both in the short-term and long-term. Among them, the recent optimization uses the quantitative method, which firstly predicts the financing demand of the company. Then, on the basis of the prediction, this paper constructs the objective function by using the sustainable growth model and the gray linear programming model. At last, this paper obtains the appropriate financing scheme of the company through the matlab optimization software. The long-term optimization is mainly qualitative plan because it is difficult to predict. Finally, this study makes the feasibility analysis for the recent optimization and the long-term financing planning. What’s more, this study also puts forward the specific safeguards combined with the company’s actual situation.