Research On BYD’s Financial Strategy Evaluation Based On Three-Dimensional Strategy Matrix Model

With the advent of the "post-subsidy era",government subsidies have seriously declined.For the new energy automobile industry,which relies heavily on government subsidies,it faces a series of challenges,such as tight capital flow,rising costs and intensified competition among enterprises.To maintain sustainable enterprise competitiveness,enterprises need to formulate development strategies,make long-term plans,and constantly improve and optimize their financial strategies.BYD is a leading enterprise in China’s new energy automobile industry.The development history of its new energy automobile business can represent the development history of China’s new energy automobile industry.However,there are also some problems,such as excessive dependence on short-term debt,unreasonable capital structure,heavy debt repayment pressure and large fluctuation of dividend distribution policy.How to better adapt to the internal and external environment and adjust its financial strategy accordingly to achieve sustainable development is an important issue for BYD.In previous studies,two-dimensional financial strategy evaluation models were mostly used,but they ignored all kinds of unfavorable situations and risks in the process of enterprise operation.Business risk is the possibility of adverse events in the process of production and operation,which has a certain impact on the financing,investment and income distribution strategy of enterprises.Based on this,this paper applies the three-dimensional strategic matrix model with the coordinates of capital status,economic value and operational risk to test,evaluate and optimize the financial strategy of BYD enterprises,so as to provide reference for the sustainable development of new energy automobile industry.Based on the value creation theory,sustainable growth theory and financial strategy matrix theory,this paper systematically analyzes,evaluates and studies BYD’s financial strategy by using the three-dimensional strategic matrix model,and puts forward the corresponding optimization scheme.First of all,it introduces the general situation and financial situation of BYD,and judges that BYD adopts an expanding financial strategy according to its overall strategy.Secondly,on the basis of combing and summarizing the relevant literature of corporate financial strategy,this paper analyzes BYD’s financing,investment and dividend distribution strategy;Thirdly,by calculating the relevant financial indicators from 2017 to 2021,it is found that BYD’s three-dimensional strategic matrix is in the I(1)quadrant and the II(1)quadrant respectively.Although it is in the state of value growth,the growth fluctuates greatly,and most of the time the enterprise is in a state of capital shortage;Finally,using the strategic matrix,this paper evaluates the financial strategy of BYD Auto from three dimensions: capital surplus and deficiency,enterprise value and operational risk,analyzes its position in the strategic matrix and its main problems,analyzes BYD’s environment by SWOT method,and puts forward specific optimization schemes and safeguard measures from the aspects of financing,investment and dividend distribution strategy.This paper applies the three-dimensional financial strategy matrix to the evaluation and optimization of enterprise financial strategy,expands the research on the application of financial strategy matrix,improves the financial strategy evaluation system,and has certain practical value for the research of enterprise financial strategy.