Research On The Impact Of Financial Integration On Financial Performance Of Company A

In recent years,due to the scarcity of funds and the asymmetry of market information,most enterprises often encounter problems such as difficulty in financing and expensive financing in the process of development.The integration of industry and finance has attracted much attention as an important means to ease the financing constraints of enterprises,so whether the integration of industry and finance can help enterprises break through the financial difficulties,what impact will it have on the financial performance of enterprises,and at the same time whether there will be potential Therefore,discussing the impact of the integration of industry and finance on the financial performance of enterprises has practical reference significance for enterprises that want to implement the strategy of integration of industry and finance.This paper selects Company A,one of the leading enterprises in the home furnishing industry,as the research object,and studies the impact of Company A’s implementation of industry-finance integration strategy on financial performance by combining literature research method,financial index analysis method and case analysis method.First,it introduces the general situation of Company A,the reasons for the integration of industry and finance,and the way to implement the integration of industry and finance.Then,using the financial index analysis method and Du Pont analysis method,combined with the data before and after the integration of industry and finance of Company A,the profitability,profitability,compensation Carry out vertical analysis on debt capacity and growth capacity,and conduct horizontal comparison of various financial indicators based on the comparison of enterprise data.In order to make up for the lack of financial indicator analysis,non-financial indicators such as main business scale,industry changes,and synergy effects are also selected for analysis.The study found that the combination of industry and finance has enhanced the profitability,solvency and growth ability of Company A to a certain extent,and achieved industrial diversification,eased financing constraints and obtained synergies.After research,this paper draws the following conclusions: Company A’s implementation of the strategy of integrating industry and finance enables the enterprise to realize diversified operations,expand the scale of operation,enhance the comprehensive strength of the enterprise,and enhance the competitiveness of the enterprise.However,at the same time,the implementation of the industry-finance integration strategy also exposes Company A to certain potential risks.When implementing the industry-finance integration strategy,companies must adhere to the main operating position of the real industry,and cannot rely on the financial industry to pursue high profits.offset to avoid operating risks.It is hoped that the research in this paper can provide a reference for other enterprises to implement the integration strategy of industry and finance.