Financial Risk Management From The Perspective Of Sustainable Growth

The problem of enterprise sales growth and financial risk are actually closely related.When the enterprise is in the state of overspeed growth,there will be a capital gap,which may lead to more debt financing,thus increasing the financial risk of the enterprise.As an emerging industry,due to the huge demand of the market,new material industry rapid development at the same time,the speed increase,so in the back of a speeding growth,the industry is how to solve the problem of the funding gap,mainly depend on what kind of solution,the solution of the gap is caused this kind of financial risk and how to manage the financial risk,it is in this paper,we solve the problem.This paper takes the listed companies in the new material industry as the research object,takes the rapid development of the new material industry as the historical background,takes sino-platinum industry co.,ltd.as the case representative,and puts forward some Suggestions on the financial risk management of the over-speed growth enterprises from the perspective of sustainable growth.First,on the basis of summarizing the theories of sustainable growth,capital structure and preferential financing,the sustainable growth model of Higgins was selected as the main theoretical line.Secondly,it analyzes the current growth situation of the new material industry,the source of funds and financial risks behind it,and selects sino-platinum co.,ltd.as the case representative to explore the financial risks behind its overspeed growth process.Finally,based on the perspective of sustainable growth,the paper puts forward the corresponding measures for enterprises with overspeed growth to manage their growth and control their risks.The findings are as follows: Based on the Higgins sustainable growth model,China’s new material industry as a whole is in a state of overspeed growth with a large deviation;There is a significant positive correlation between the degree of overspeed growth of enterprises and financial risks.The new material industry solves the problem of capital gap mainly by increasing liabilities.Supporting cases the company’s overspeed growth is achieved through the improvement of asset operation efficiency and the increase of financial leverage,which mainly relies on the improvement of financial leverage,thus increasing the financial risks of the enterprise;The case study of the company found that by increasing the net interest rate on sales,increasing the ratio of retained earnings,increasing the turnover rate of total assets and reasonably formulating financing strategies,the sustainable growth ability of the enterprise can be improved to match the actual growth rate and to manage the financial risks faced by the overspeed growth of the enterprise;Enterprises should make a scientific assessment of internal resources when formulating growth strategies.When overspeed growth is difficult to maintain,enterprises should slow down in a timely and appropriate manner in order to reduce financial risks and realize sustainable and healthy development of enterprises.This paper provides a solution to guiyan platinum industry company feasible solution,speeding growth of financial risk management to the management in the growth strategy development,financial risk management for reference,and other speeding growth within the industry provide certain reference significance to enterprise’s financial risk management,and promote the healthy development of the new material industry in China.