• Empirical Research on Sustainable Growth of Automobile Manufacturing Listed Companies   [MASS 2012]
  • Author(s)
  • Jing Ma, Huizhen Xu
  • Sustainable growth rate is an integrated financial index. It reflects a company's sustainable growth situation from the company's operating efficiency and financial policies. It uses retained earnings rate to reflect the manager's attitude towards the dividend payment and clears the manager's intention to use both internal and external resources. At the same time, sustainable growth rate provides an important reference for a company's development ability. When the actual growth of the company is different from the sustainable growth rate, it reminds managers to identify the financial problems of high growth or slow growth so that managers can develop the right financial strategies and tactics in time. This paper is based on Robert C Higgins's sustainable growth model. By calculating the sustainable growth rate and the actual growth rate, the paper analyzes the sustainable growth conditions and net profit margin, total asset turnover rate, retained earning rate and equity multiplier’s impact on China's automobile manufacturing listed companies. It reveals some financial problems of these companies and provides some suggestions.
  • Automobile manufacturing listed companies; Sustainable growth rate; Actual growth rate
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