A Case Study On The Broken Capital Chain Of Letv From The Sustainable Growth Perspective

In modern society,the Internet industry is growing rapidly and increasing competition.The vital factors of continuous and stable growth are the developed track grip and capital operation.For the purpose of making themselves outstanding in fierce competition,many companies pursue high-speed growth,but ignore the reserve and operation of funds.Transitive and influential capital chain is enterprises' blood vessel.Businesses will become dangerous,when the situation of incompatibility between capital and growth appears.It makes the enterprise fall into the mud.Letv is committed to build the ecological system about “platform + content + terminal + application”,manage Internet video,electronic products,television play and so on.The industry praised its wide crossover and fast update speed.Letv's stock has appreciated in recent years.However,no one really understands the implication of “ecology”.The huge gap between sustainable growth rate and real growth rate makes capital chain stressed out.Business in various sectors rapidly spread and decay.From 2016,a series of negative news shows Letv's unprecedented dilemma.This case is of great significance and enlightenment function for the balance of rapid development and operation of funds.This paper takes Letv as an example,starts with the gap between sustainable growth rate and real growth rate and analyzes the cause from both the low sustainable growth rate and the high real growth rate.Using the methods of data analysis and contrastive analysis to calculate net sales rate,total assets turnover and liquid liabilities proportion and sort out the reference materials about profit models,financing structure,business layout and corporate governance for exploring Letv's capital chain.I hope that this paper can provide some reference value for Letv's the solution to capital chain problem and other enterprises' risk defenses.