How to use debt to enhance enterprise value

Debt management, also known as debt management, is a mode of operation of enterprises. Enterprises raise funds by borrowing, leasing and issuing bonds. Therefore, from the connotation analysis, if an enterprise's business model wants to be defined as debt management, it must meet the prerequisite that debt funds must be obtained through intervention. However, this requirement is too broad. In fact, the liabilities within the scope of liability management can only be short-term liabilities, such as short-term loans and short-term bonds.

Company value, also known as enterprise value, is the value of working capital that an enterprise can obtain by calculating the weighted average capital cost through the discount rate algorithm. It is an important indicator related to the company's important financial decisions, reflecting the company's value, ensuring the company's sustainable development, and also related to the company's financial risks. If the concept of management is used to define the company value, then the company value is the ability of the enterprise to satisfy the relevant stakeholders of the company and get enough returns by improving management methods and following market rules.