Research On The Sustainable Growth Of Northern Rare Earths

China's rare-earth corporations still face grim tests when the rare-earth industrial development from rapid expansion to depression to seeking scientific development.Financial risk which is caused by the irrational pursuit of the sales growth,is a major problem for many enterprises.Therefore,it has certain theoretical and practical significance to research on the financial sustainable growth of enterprises,which is helpful in controlling and resolving the financial crisis from its root.This paper takes Northern Rare Earth as a case,used the date we have collected,after compared SGR counted by Higgins model and its real Growth Rate,we find that the case growth to rise sharply relative to sustainable growth.On this basis,further comprehensive to study the impact of net profit margin on sales,total asset turnover,equity multiplier and retention rate on the sustainable growth of enterprises in the paper.According to the research,the main reason for the rapid growth of enterprises is that the primary business income has increased significantly year by year at the beginning of listing,moreover,the rising equity multiplier and the high retained rate of return cannot restrain the sustainable growth rate decline caused by the decline of the net profit margin on sales and low levels of the total asset turnover rate.The study found that the problems are the low net profit margin on sales,larger receivable proportion of account,unreasonable capital structured and debt maturity structure,and unreasonable dividend distribution.Based on the above case results,management of sustainable growth of enterprises,we should pay attention to control cost and improve profitability;attach importance to raise capital management level and improve the capital operation.At the same time,we should optimize capital structure and debt maturity structure and adjust the dividend policy to promote to realize the sustainable growth of enterprises.