What is more important for enterprises to become bigger and stronger?

Everyone is talking about making the enterprise bigger and stronger. As a result, many enterprises just became bigger, not stronger and closed down. To be big, first of all, it refers to scale. To be big, you have to expand investment. To expand investment, you have to borrow money, and bank loans are essential. Bank loans are often short-term financing, which is used for long-term investment. As a result, there was a problem with cash flow, robbing Peter to pay Paul, and finally it was self-destructive. It is more important for enterprises to become bigger and stronger. Vanke's benchmark is American real estate developer Paldi. Paldi has established an iron law to control financial risks: the ratio of long-term interest-bearing liabilities to capital (D/C) shall not exceed 40%. The control of this financial indicator has made Paldi's balance sheet relaxed and profitable for 55 consecutive years. Vanke began multi-channel financing in 2005, a considerable part of which is equity financing. The long-term interest-bearing debt ratio is not high, and Vanke must continue to increase its equity capital in 2007. Therefore, it is necessary to liberalize management and tighten management; Market liberalization and financial tightening; Let go of ideas and tighten the system. Pay more attention to operating income, profit, cash flow and sustained profitability.