Research On Financial Risk Of XA Company

The management of a company involves financial activities,and financial activities involve financial risks.The financial risk of a company is the financial loss or deterioration caused by deviation of income from its expectation with the interfere of various uncertainties in its financial activities.With the deeper integration of China into the global market,Chinese companies are facing increasingly complicated situations,which poses more challenges to the management of companies.As a necessity of a modern company,financial risk management has gained more attention.Some adequate companies have designed and set up internal financial risk control system,or hired professional institutes.With its raising popularity,financial risk management has become one key link in company management.However,there are still problems in the practical use of financial risk management,and its improvement demands more time and resources.This paper takes Company XA as example;analyses its financial problems with Z core mode,financial leverage theory,free cash flow,profitability and development capability;and discusses its potential financial risks from both qualitative and quantitative perspectives.As a result,problems such as poor budget management,defective financial alarming system,late judgement on potential market risks,unbalanced financing structure,and low work capability of financial staff are discovered and analyzed,and countermeasures are offered.After analyzing the problems and giving countermeasures,a solution scheme is proposed to control financial risks,elevate company value,and prevent financial risks,for the theoretical supports to the continuous development of the company.