Analysis Of Action Guide For Corporate Finance

Financial market, as the place of financing and the link between the two sides of the supply and demand of enterprises, has a decisive impact on the socialization of financial behavior.

The opening of the financial market system determines the openness of corporate financial behavior.

Corporate finance is based on capital movement, and capital movement is an abstraction of the general and essence of business process, and a complete reproduction of the operation process of enterprise reproduction.

Therefore, financial management centered on capital management is a dynamic management system.

Enterprise financial management revolves around capital movement.

As a comprehensive expression of the main process and main aspects of enterprise production and operation, capital movement has the greatest comprehensiveness.

Mastering the capital movement is like holding the nose of enterprise's production and operation.

Comprehensiveness is an important feature of financial management.

Today, the financial manager of a company always talks about "tight funds", and often runs out of funds. It believes that the goal of corporate finance is to raise funds.

But in fact, many enterprises do not lack capital and lack of working capital and the ability to maintain value and increase value.

This will inevitably lead to less quality assets, more poor assets, poor liquidity and weak liquidity.

How much money an enterprise should have must be its own.

In line with the direction of investment, the pursuit of incremental capital and revitalize stock assets are often the root causes of their failure in operation.

In addition, any money coming from the fundraising channel is not a free "Tang Seng meat", but probably a "hot potato", because the providers of funds always get the desired returns.

Enterprises do not have good investment projects, or when investment returns are much lower than financing costs, it is better to not raise money.

"Enterprises are working for banks", which vividly reflects some operators' state.

Large shareholders of many enterprises regard equity financing as "no need to repay the money" because the minority shareholders have no say in the operation and dividends of the company, but the peculiar phenomenon in this pitional period will not last.

The mature enterprises in Europe and the United States strictly abide by the so-called "pecking order" in financing: first, internal financing after external financing, first equity financing after equity financing.

Because equity financing must pfer part of the control rights of the company, comprehensive comparison is the most expensive way of financing, and the more efficient companies should avoid this financing mode.

Another advantage is called "tax stall".

Tax laws in various countries allow enterprises to deduct interest on debt before tax.

Suppose that a company has its own 100 million yuan as a floating capital, earning 20 million yuan pre tax profit, paying 6 million 600 thousand yuan of income tax, and a net profit after tax of 13 million 400 thousand yuan.

If the company uses 100 million of its debt as a floating capital, the profit before tax will reach 40 million yuan, and the annual interest rate will be 5 million yuan (generating 1 million 650 thousand yuan "tax stall"). The income tax is 11 million 550 thousand yuan and the net profit after tax is 23 million 450 thousand yuan.

But debt management has also increased business operations.

Once the profits created by the debt generated by the enterprise can not bear the cost of debt, the enterprises will face considerable repayment pressure or even be forced to go bankrupt.

Let's look at the above example. If the market changes, the company has no profit this year. If we borrow 100 million yuan at the beginning of the year, we will have to pay 5 million yuan profit.

Therefore, the general company will control the asset liability ratio to less than 50%.