Any business, once in operation, naturally forms a certain capital structure—whether the owners consciously design it or not. This is a topic that is both theoretically intriguing and practically significant. It can be said that, as a corporate financial manager, the first question you must address is how to build the company’s capital structure: how much equity to maintain, how much to borrow from banks, and how to balance these sources in order to maximize the firm’s value.
An optimal capital structure is defined as a structure in which the average cost of capital is minimized and the value of the enterprise is maximized. While this concept appears straightforward in theory, reality shows that most small and medium-sized enterprises lack effective methods to control their capital structure. As a result, their funding sources fluctuate between severe excess and shortage, causing significant losses in both financial resources and overall stability.
OPTIMAL CAPITAL STRUCTURE & CASH FLOW CONSULTING AT ASA
With a team of professionals experienced in financial management and risk management, ASA is confident in providing you with effective consulting solutions, including:
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Indicators and metrics used to determine a reasonable capital structure.
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The appropriate scale of capital needed for each stage of business operations.
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Capital turnover ratios and key indicators related to receivables, revenue, and cost.
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A system of growth measurement signals to support strategic decision-making.
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Capital flow structure planning for 1-year, 3-year, 5-year, and 10-year stages.
ASA is a leading and highly reputable provider of professional OEM/outsourcing production services. We are the only unit currently capable of offering free consulting and delivering a full package of services related to the manufacturing and business sector.