What is the significance of enterprise financial strategy?

Financial strategy refers to 1 an objective and scientific summary and description of the development goal, direction and path of financial activities made by the company in a fixed period of 1 according to the macroeconomic development situation and the company's development strategy. The choice of financial strategy determines the direction and mode of enterprise financial resource allocation, and affects the function and effect of enterprise financial management activities. Common types of financial strategies include: ① Expansive financial strategy. It is 1 a financial strategy aimed at realizing the rapid expansion of enterprise assets. In order to implement this financial strategy, enterprises often need to save most or even all of their profits, raise a lot of external funds and make more use of liabilities. Raise a large amount of external funds to make up for the shortage of internal accumulation relative to the expansion needs of enterprises; Debt financing is used more than equity financing, because it can not only bring financial leverage effect to enterprises, but also avoid dilution of return on net assets and earnings per share. Expansive financial management strategy 1 generally presents the characteristics of high debt, high income and less distribution. ② Steady financial strategy. It is a 1 financial strategy, which aims to realize the steady growth of corporate financial performance and the steady expansion of asset scope. Enterprises such as 1 that implement a prudent financial strategy will take optimizing the allocation of existing resources and improving the effectiveness and efficiency of the use of existing resources as an important task, and take profit accumulation as the basic source of funds to expand the scope of enterprise assets. In order to avoid excessive interest burden, such enterprises often adopt a cautious attitude of 10, and use liabilities to expand their assets and business scope. Therefore, the 1 financial characteristics of enterprises implementing a prudent financial strategy are moderate debt, moderate income and moderate distribution. ③ Tight financial strategy. It is 1 a financial management strategy aimed at preventing financial crisis and seeking survival and new development. 1 Implement the defensive contraction financial strategy, and take it as an important task to minimize cash outflow and increase cash inflow. By cutting branches and streamlining institutions, we can revitalize existing assets, save capital expenditure, and concentrate 1 on enterprise-led business, so as to enhance the market competitiveness of enterprise-led business. Because most of these enterprises have suffered setbacks in the past development process, it is very likely that they have implemented an expansionary financial strategy. The historical debt burden and the difficulties faced in current operations have become two important reasons for forcing them to adopt a defensive contraction financial strategy. Low debt, low income and high distribution are the basic financial characteristics of enterprises that implement this financial strategy.