APPLIED ISSUES OF ENSURING CORPORATION SUSTAINABLE GROWTH UNDER LIMITED FINANCIAL CONDITIONS RESOURCES
Author(s): Brodunov A.N., Bushueva N.V.
Rubric: Economy
DOI: 10.21777/2587-554X-2021-4-24-32
Release: 2021-4 (39)
Pages: 24-32
Keywords: internal growth, sustainable growth, limited resources, financial planning, operating cash flows
Annotation: Survival of a business under modern conditions largely depends on how well the management determines the prospects for its development. The latter depend on various parameters directly related to the company’s financial policy including sales dynamics, profit amount of and invested capital, amount of dividends paid, etc. At the same time as research by R.S. Higgins shows company’s financial policy does not always correspond to the projected rates of its development (growth) and, often, requires significant adjustments. This article considers the possibility of making informed decisions on the development of operational and strategic plans based on the concept that in financial sector is commonly called “the concept of sustainable growth (SGR – Sustainable growth rate)”. The essence of this concept is the ability to make an informed choice of financial policy related to the search for sources of financing for the resource provision of the projected (achievable) corporation development. Thus the article attempts to substantiate recommendations for adjusting company’s financial policy in order to ensure the projected pace of its development (growth). The authors carry out an analysis of methods for assessing the possibilities of sustainable growth on the example of a specific corporation under different scenarios of financial planning. Namely we determine the rate of internal and sustainable growth, identify an imbalance in forecasting of financial statements and propose possible options for managerial financial decisions.
Bibliography: Brodunov A.N., Bushueva N.V. APPLIED ISSUES OF ENSURING CORPORATION SUSTAINABLE GROWTH UNDER LIMITED FINANCIAL CONDITIONS RESOURCES // Economics and Management. – 2021. – № 4 (39). – С. 24-32. doi: 10.21777/2587-554X-2021-4-24-32