On Financial Risk Management Of Private Highway Company

The highway industry has the characteristics of a large number of investment scale and a long investment cycle. The highway company must be under enormous financial risk in the process of construction and management. When compared to private highway company and the listed highway company, private highway company lack of effective financing channel, so the financial risk is higher. Based on this, this article use financial statement analysis to analyze the financial risk of the MH highway, evaluating the MH company financial risk level, and trying to extract the highway industry of common problems and give advice.First introduced the research background and significance of this article, and then summarized the relevant theoretical basis to the financial risk in the form of literature review. Then introduced an overview of MH company, generalization of MH highway project, MH company’s financial situation, and used financial statement analysis to analyze the MH company’s solvency, development capacity as well as a number of financial indicators after deducting depreciation, to determine MH company financial risk level. Concluded that the company have high financial risk and the trend of worsening, and even financial crisis may occur.The paper analyzed financial risk factors combined with MH company status quo in the final, including two aspects of the external environment and internal environment factors, and gave the relevant policy recommendations accordingly. Advice should strengthen financial risk management is put forward. it included prediction of the macroeconomic situation and the industry policy, optimize the financing structure establishing reasonable charging standards, optimization of depreciation accounting treatment, a sound system of asset management to avoid assets depreciate significantly, etc. Constantly promoting the development of highway industry’s financial risk management, cultivating specialized financial risk management talent, improving the management of financial risk management consciousness is the foundation of expressway companies, we need to pay more attention in the future work.