| The asset operation mode is the foundation of sustainable development of the enterprise,and the selection of the appropriate business strategy is the inevitable choice to promote the long-term stable construction.At present,professionals in the relevant fields have never ceased to discuss the choice of the capital management mode of enterprises,and the relevant theoretical results are gradually being further developed.In the relevant field,Western companies have a longer history,and their research results are more perfect and have been used more often in practice.However,in China,there are not many cases where theory and practice can be integrated,especially in the financing of financial risks in agricultural farming enterprises,which has received little professional attention.From a strategic point of view,if a company has a standardized product and sales chain,it can rely on its own economies of scale by adopting an asset-heavy business approach;in terms of financial data,the asset-heavy business approach of an enterprise is mainly characterized by a high level of total corporate debt and a large scale of inventories.Due to the continuous changes in the market,the business operation style has undergone great changes and has been highly valued by the industry.There have been many successful cases of companies operating in any way,such as the Makara Group,which has won unanimous recognition in the industry for its asset-heavy approach to business.This thesis explores the current financial risk crisis of the Shepherd Plains Group from the point of view of its own characteristics and the integration of farming.This paper draws on a large amount of information related to the asset-heavy operating model and financial risk to gain an in-depth understanding of the problems in business operations and to summarize the results of existing research,thus laying the foundation for the case study in this paper.Firstly,we introduce the overall operating situation of Shepherd’s Field,secondly,we compare the financial indicators with other enterprises in the same industry within the last five years,as well as calculate Z-values and analyze EVA economic value added indicators to study the impact of the asset-heavy operation mode on the financial risk of Shepherd’s Field,and finally,we make reasonable suggestions to the case company and the industry as a whole,with a view to providing reference for the development of the enterprise.The main conclusions of this thesis are as follows: In the course of its rapid development,the Shepherd Plains Group has adopted an asset-heavy operating model,which,although the company has high revenues as well as high returns,still has certain financial risks,characterized by a single source of funds,excessive debt,financing as well as debt servicing risks due to a disorganized debt structure,long-term input processes,and operational and circulation dangers due to inefficient turnover.In this context,the author proposes the following countermeasures:expanding financing channels and diversifying financing models;rationalizing the size and composition of the company’s debt;making sure to strengthen the monitoring of projects before making preliminary investment decisions;using investment strategies to diversify the company’s investment direction;and improving inventory management systems to enhance the efficiency of the resources’ use. |
