Research On Financial Risk Evaluation And Control Of T Company

Throughout the domestic garment textile consumption market in recent years,garment textile companies are faced with the impact of a variety of domestic and foreign factors,increasing the uncertainty of financial activities of industry companies,financial management is more challenging,financial risk intensifies.In such a complex external environment,if the company does not pay attention to the prevention of financial risks,it may cause a variety of financial problems: market changes lead to insufficient or excessive product supply;Increased financing costs,refinancing difficulties and uncertain returns from leveraged financing;The gap between investment project’s final income and expected income is too large;The decline of profitability can not realize the expansion of scale and strength on the existing basis.As a well-known brand in the garment and textile industry,T Company’s asset scale,main business income and net profit have been declining since 2016.This paper expects to realize its stable and sustainable healthy development by identifying,evaluating and controlling the financial risks of T Company.This paper takes T Company as the research object.Firstly,it summarizes the concepts and theoretical basis of financial risk,including the concepts and methods of financial risk,financial risk identification,financial risk evaluation and financial risk control,etc.Secondly,the financial situation of T company is introduced,and the financial risk of T company is identified by financial statement identification method,and the financial risk of T company is found in the four aspects of operation,investment,financing and development.Thirdly,z-Score model and factor analysis method are used to evaluate T company’s financial risk vertically and horizontally.Z-score model evaluation results show that T company’s operating risk and investment risk are more serious,development risk is second,financing risk is the lowest.The evaluation results of factor analysis show that the financial risks of T company are listed in the following order:operating risk,investment risk,development risk and financing risk;Finally,according to the financial risk identification and evaluation results of T Company,the risk prevention and control measures are formulated for T company’s operation,investment,financing and development risks by using financial risk control methods.It is believed that T Company should improve the inventory turnover rate and strengthen the management of accounts receivable.Broaden their own financing channels,improve the capital structure,appropriate leverage effect;Strengthen investment management and increase investment in R&D and design;Improve business strategy,strengthen cooperation between upstream and downstream companies.