Research On Financial Risk Evaluation Of SH Real Estate Company Based On Efficacy Coefficient Method

As China’s efforts to build a comprehensive well-off society is accelerating,the people’s living standards continue to improve,the public’s desire to buy more and more strong housing,the rapid development of real estate enterprises,making the real estate industry has become China’s pillar industries.But the real estate industry is still relatively late start in china,a lot of real estate industry norms and systems are not perfect,while real estate business capital investment,recycling cycle is long,making the real estate business changes in economic trends and the impact of macroeconomic regulation and control policy is very large,thus improving the real estate business financial risk.Since the financial crisis was outbreak in 2008,the world economy is in a relatively low state in a very long period of time,making the entire real estate industry has been a great impact,especially small and medium-sized real estate business.Many of the more powerful real estate enterprises due to well-funded,can withstand the risk,and gradually become the main forces of the industry,and began to acquire small and medium-sized real estate enterprises,making a lot of small and medium-sized real estate business survival difficulties,more and more liabilities,financial risk is also growing.Therefore,this paper identify and evaluate the Financial risk of SH real estate company,and according to some of the existing financial risk issues put forward some control measures for other small and medium-sized real estate enterprises learn from and use.In this paper,SH real estate company as the research object,first of all,from the financing risk,investment risk,working capital risk,income distribution risk of these four aspects of some financial indicators to assess their financial risk,according to the results of the assessment to understand the SH real estate company’s overall operating conditions and financial situation.And then select the financial indicators from the four aspects of solvency,operation ability,profitability and development ability,and use Pearson correlation analysis method to select the representative of the financial indicators.These financial indicators are mainly asset-liability ratio,accounts receivable turnover rate,cost-profit margins,operating income growth rate,the use of analytic hierarchy process to determine the weight of selected financial indicators.Finally,the improved efficiency coefficient evaluation method is used to calculate the index of each index,the index of each capacity group and the comprehensive index of the whole company.The financial risk rating is evaluated according to the evaluation level of financial risk.Combined with the SH real estate company’s actual situation and evaluation results,the company’s existence of the reasons for the risk analysis,and put forward the corresponding financial risk prevention measures to help companies can better operation and development.