A Company With An Annual Output Of 5000 Tons Of Ultra-high Molecular Weight Polyethylene Fiber Financial Analysis And Risk Control

The project financial analysis is an important part of project evaluation. Based on the theory of projects financial analysis, this paper conducted a financial analysis of Shandong A company's annual output of 5,000 tons ultra-high molecular weight polyethylene fiber project. From the selection of subjects to the basic theory of analysis and study, mainly using a combination of qualitative and quantitative, static and dynamic combination of research methods to solve problems and draw conclusions.The first chapter describes the concept and meanings of the project financial analysis as well as the the indicators of profitability and solvency, the project also introduced uncertainty analysis of the evaluation indicators.The second chapter make a detailed description of the project's environmental and occupational safety and energy conservation, project technology programs and equipment selection, project portfolio and construction conditions, project construction schedule as well as simple analysis of market demand and competition.The third chapter is the project investment and financing analysis. In this part, we estimate the approximate data of fixed assets, current assets and total investment also product sales revenue, costs and taxes is estimated and analyzed.The forth chapter is mainly focused on financial analysis of projects, according to the data estimated in Chapter III, we have make preparation of financial statements includes a balance sheet, cash flow and profit and loss statement. From the financial statements we calculated solvency and financial indicators, mainly including investment profits, the investment profit rate, internal rate of return, asset-liability ratio, liquidity ratio as well as the quick ratio and so on. Concludes with related uncertainties, the project uncertainty analysis and risk analysis is made which provide a strong support to project investment.The fifth chapter conclusion some of the major work on the study of the paper, sums up the financial viability of the project, and conclude that from a financial point of view this project is feasible.This paper deeply analyzed main content, basic characteristics as well as main points of financial analysis theory, combined with the characteristics of the project to carry out financial analysis for studying the feasibility of the project to help companies to avoid financial risks, promoting enterprise management development of great significance.This article only make a feasibility analysis from a financial point of view and quantitative uncertainty analysis. At the same time as the huge amount of investment in the financial estimate, will inevitably lead to bias, but does not affect the financial results of the analysis.