Research On Financial Risk Analyzing And Preventing Of M Company

The paper making industry have close correlation with other industries, driving the synchronous development of agriculture, forestry, industry, the paper industry has now become the fundamental industry of national economy in our country. Affected by the economic downturn and the state environmental protection policy, the paper industry enterprise suffered financial risk, presenting as a low level of efficiency, shortage of funds, the imbalance between supply and demand. This not only threat to the enterprise's survival but also cause adverse impact on the healthy development of the industry, and influence the capital market order. Therefore, we should effectively analyze the financial risk of the paper-making enterprise and take strong countermeasures to control it.This article focuses on the subject of M company on the financial risk control research.The company suffered huge losses in 2012, and the later two years rely on government subsidies and selling assets to maintain profit.Main products of the company are inefficient with excess product structural and the sharp contradiction between supply and demand, financial risk rapidly accumulates.This article selecting five aspects of financial indicators involved operating capacity, solvency, profitability, development ability and the cash flow ability in 2014 of listed company in paper-making industry using the factor analysis method to establish financial risk evaluation system;And then from the enterprise external and internal respectively on the financial risk identification;Finally, propose risk prevention measures from corresponding aspects of financial risk identification.In conclusion, through the exploration of this article, to find the existing financial risk problems of the M company and proposes the corresponding risk control measures through the analysis methods, in order to make the company's assets operation virtuous cycle, asset quality improved steadily, stable and healthy development, and to provide certain reference significance to other companies in the industry.