Financial Risk Analysis Of Hubei Yihua

In an increasingly complex market economy environment,financial risks are ubiquitous due to the uncertainty of corporate financial activities.If a company’s financial management is not in place,it may trigger a financial crisis and lead to bankruptcy.Hubei Yihua is one of the leading enterprises in Yichang and one of the top ten most influential enterprises in the petrochemical industry in China.However,due to excessive debts and poor profitability in recent years,the funds are tight and the financial risks have increased sharply.After years of development,the fertilizer and chemical industries are currently at a mature stage,with overcapacity and fierce market competition.Although Hubei Yihua is a leading enterprise in the domestic fertilizer industry,most of the fertilizer production technology is backward,high in cost and low in efficiency.At the same time,it borrows a lot of money from the bank and invests in projects that have no return.Due to poor project profitability,investment returns The low rate has increased the debt repayment pressure of Hubei Yihua and the financial risks are also increasing.Based on the theory of financial risk management,this paper sorts out the relevant theories of corporate financial risk analysis and control,and produces a general understanding.Based on this theory,Hubei Yihua is the research object.Firstly,it analyzes the overall financial situation of Hubei Yihua,and then analyzes the risk from financing,investment risk,capital recovery risk and income distribution risk according to its annual report data.The financial risks of the company existed.At the same time,the financial indicators of Hubei Yihua were compared with the average of the chemical industry,and the Z-score model and the F-score model were used for evaluation.Then,the impacted enterprises were identified from the two aspects of external risk and internal risk.The reasons for financial risks,in the end,put forward corresponding control measures for the risk causes of Yihua’s financial risks.