Financial Risk Assessment Of WP Company Based On Analytic Hierarchy Process

In the market economy environment,corporations face more and more uncertain factors that will cause financial risk.To electric bicycle corporations,the technical update rapidly,and social regulations change continuously,so corporations face more market competition pressure and the pressure of technological innovation that both may cause financial risk.This paper takes WP Electric Bicycle Corporation as the research object.Through the analysis to the financial data and the financial characteristics of WP Electric Bicycle Corporation,the paper analyzes the main financial data and financial indexes of WP Electric Bicycle Corporation in the stage of risk identification,and compares with the industry average for the financial ratio in the four aspects,debt-paying ability,operating capacity,profitability and development capacity.Then,the paper analyzes the financial situation that may affect WP Electric Bicycle Corporation from the external and internal factors,and find that the debt structure of WP Electric Bicycle Corporation is unreasonable.There are many problems.There is no long-term debt.The period of accounts receivable is too short.There is no complete financial warning mechanism.The corporation lacks regular training for employees.The amount of receivable accounts tending to upward cause that the risk of bad debts increases and affect the actual income.Due to the rising of financial costs,the cost rate increase,and cause the financial management level of the corporation decrees.Construction project and idle assets are high,and the operational efficiency is low,so there is a certain risk of capital operation.According to the basic financial status,operating status and financial index analysis of WP Electric Bicycle Corporation,this paper builds the target layer,the standard layer and the program layer in the financial risk assessment model,and issue questionnaires to financial staff,management and employees of corporation.Then,using the scores by experts to certain the weight of each indicator,and calculate the risk score of corporation and calculate the risk level.Through the calculation,the financial risk of WP Electric Bicycle Corporation at a moderate risk,a higher risk level,especially the development capacity has a high risk.In view of these problem found above,this paper proposes some improvement methods,improve the financial system,optimize the corporate debt structure,improve corporate culture,change sales strategies.Through this study,wishes for improving the financial risk of WP Electric Bicycle Corporation,and raising the business performance.