Financial Risk Analysis And Evaluation Of Lushang Property

Since the establishment of the relevant land law in 1978,The real estate market along with China’s reform and opening up the pace through the ever-changing 40 years.For decades,the real estate industry with its strong driving force,the prosperity of the upstream and downstream industries,improving the people’s daily lives and social infrastructure,but also promote the national economy rolling forward,firmly occupy a pillar position.At the same time,however,given the large demand for real estate funds,investment and other sectors slow recovery characteristics and its sensitivity to the national macro-control,China’s real estate industry listed company’s assets-liability ratio remains high,a single financing and capital structure is irrational and so obvious drawbacks,which led to the financial risk of the real estate industry has been generally higher than the phenomenon of other industries.2015,the state in response to inventory and supply side reforms,the five rate cut,the four RRR,housing prices to create a more relaxed financing environment.But the latest data in 2016,real estate enterprises,the overall asset-liability ratio is rising and net profit margins and gross margins are falling,which will inevitably exacerbate its financial risk,the real estate industry is still facing enormous challenges.Therefore,the face of the complex external environment,combined with the characteristics of the industry itself,identify the financial risks faced by enterprises and then the corresponding early warning and resistance,is every room rate managers need to be resolved.Based on the above macro background,this paper selected a real estate listed companies as a research object,This paper uses the corresponding financial risk theory as the research basis,uses the financial index analysis method to analyze the financial risk of the enterprise and summarizes the specific causes of the financial risk,and finally puts forward the corresponding improvement according to the analysis result.First of all,this paper reviews the domestic and foreign related research,summarizes several common methods of financial risk analysis and the financial risk of listed real estate companies;Secondly,lists the relevant theories of financial riskmanagement,to guide the case analysis;again,emphatically introduces the basic status of the financial risk in the case of Lushang Property and the real estate industry is currently facing;Finally,using the case analysis method of Lushang Property.2006-2015 ten years of financial statements data,From 24 as pects of financing risk,investment risk,asset liquidity risk and related transacti on risk,the author selects the quantitative financial indicators to study the fina ncial risk and points out the internal cause.The results show that there is a h uge financial risk in Lushang Property,mainly in the aspects of high debt rati o,insufficient profitability,serious inventory backlog and inefficient use of fun ds.In view of this,This paper puts forward the following three suggestions to Lushang Property according to the research conclusion: First,enhance profitabi lity,improve operational efficiency;Second,broaden the financing channels,a r easonable capital structure;Third,regulate the related transactions,optimize the allocation of resources,in order to help other real estate companies reduce th eir financial risk and improve enterprise’s overall value.