Research On Financial Strategy Of Origin Water Based On Financial Strategy Matrix

As one of the functional strategies of an enterprise,financial strategy can effectively balance the capital movement of an enterprise by allocating its financial resources,so as to improve the value of the enterprise.Generally,financial strategic decision-making will affect the overall development of the enterprise,and it is more important to realize the overall strategy of the enterprise.At present,there are few evaluation tools for financial strategy.Foreign scholars Gabriel Hawawini and Claude Viallet put forward the concept of financial strategy matrix for the first time in view of this situation.They positioned the enterprise from two dimensions of value creation and sustainable development,and then put forward the financial strategy suitable for the development of the enterprise according to the specific situation.This paper takes OriginWater Company as the research object,through the analysis of its financial data from 2013 to 2017,constructs the company's financial strategy matrix,and on this basis,studies the company's financing strategy,investment strategy,working capital management strategy and profit distribution strategy.Looking from the vertical axis of the financial strategy matrix,the company can create value in the five years from 2013 to 2017.Looking from the horizontal axis,except for 2014,the other years are capital shortage.The two evaluation indicators are more in line with the company's current development status.Through the study of the company's financial strategy,the results show that as an evaluation tool of financial strategy,the financial strategy matrix can accurately locate the development status of the enterprise,so as to formulate the financial strategy is more in line with the actual situation of the enterprise.From the perspective of financing strategy,the company mainly uses debt to finance.At present,the pressure of debt repayment is great.The company should change the financing mode,use equity capital to finance or issue convertible bonds.When the conditions are met,it can pack and sell the PPP project assets of the company by asset securitization to accelerate the speed of asset flow.From the perspective of investment strategy,the company is currently preparing to build a comprehensive environmental protection operator to expand to other environmental protection areas such as hazardous waste treatment,light environmental pollution resolution,rural governance and environmental monitoring.At the same time,the company should focus on the less profitable units within the business sector and restructure or sell them.From the perspective of working capital management strategy,the company should optimize the financing structure of working capital,speed up the turnover of accounts receivable and inventory,enhance the sustainable growth rate of company and alleviate the shortage of funds.From the view of profit distribution strategy,the company should retain profits as far as possible to support its own development,and properly combined with the way of stock dividend payment to boost investor confidence.