Financial Strategy And Implementation Plan Design Of SQ Company

As the domestic economy has shifted to the new normal,the automotive refinish industry has also accelerated its integration and agglomeration.At present,the domestic high-end paint market is mainly monopolized by foreign companies,therefore,to reduce the impact of foreign companies on China’s industry,we must strengthen the technological innovation of local enterprises.SQ Chemical,a small and medium-sized enterprise specializing in the production of automotive refinish coatings and high-end water-based industrial coatings,was ranked as one of the leading companies in Henan Province in 2021.At this stage,the choice and implementation of the financial strategy have become an important factor in the company’s ability to achieve its overall goal.In this paper,we use the financial strategy matrix to study the financial information of SQ for the period 2016-2020.Firstly,the company’s profile is described,and then the external environment and its financial situation are analyzed to understand the overall strategy of the company.Next,the sustainable growth rate,sales growth rate,and economic value added are compiled and calculated as the axes of horizontal and vertical data,and a financial strategy matrix is established to analyze the company’s value creation capacity and capital status,determine the company’s position in the matrix for 2016-2020,and thus evaluate the company’s financial situation and conclude that the company should adopt a robust financial strategy in terms of In terms of investment,SQ needs to control the ratio of inward and outward investment,improve the structure of investment in fixed assets and intangible assets,and increase investment in intangible assets;in terms of financing,the company needs to optimize the financing structure,reasonably control the ratio of long-and short-term borrowing,and maintain the optimal capital structure;in terms of operation,the company needs to strengthen the management of accounts receivable and enhance the efficiency of asset use,and accordingly,it designs the investment,Finally,we propose four measures to ensure the effective implementation of financial strategy,namely,to prevent financial risks,to develop financial strategy evaluation methods,to improve the professional quality of financial personnel,and to enhance the awareness of financial strategy,for the reference of SQ’s managers to achieve long-term and healthy development of the enterprise.