Research Of Financial Risk Assessment Based On Factor Analysis Method With DS Company

In recent years,manufacturing industries in China are experiencing an unprecedented crisis,and manufacturing enterprises of food and drink are also influenced by the crisis.In addition,restrict policy of China also influences the market,so many enterprises of this industry are confronted with financial risks.So it is necessary to establish a scientific and effective financial risk assessment system for manufacturing enterprises to avoid the risk,and this study will come up with suggestions to control financial risks for DS Company.So far the proposed measurement has already received some practical value and theoretical significance.Furthermore,it will also act as an effective reference for other companies.Based on DS Company,the study first introduces the current financial status and then analyzes financial risks about the company.Based on the actual situation and results from experts,the study selects 10 indicators from the profitability,operation,solvency,growth and cash ability.The study also come up with an effective assessment system for DS Company.The financial data of 106 enterprises in 2015 and DS Company from 2007 to 2016 is chosen,and Factor Analysis Method is used for the analysis and research.The results show that the company and the industry do have financial risks,and operational risk of DS Company is greater.According to DS Company’s two financial risk rank,the comprehensive evaluation chart of financial risk is established for DS Company.The financial risk is divided into Class Ⅰ,Class Ⅱ and Class Ⅲ,and control measures are proposed for different categories.The result showes that DS Company is in financial risk class Ⅰ.Finally,based on the financial risks,the study focuses on controlling the financial risk and optimizing the financial risk management system.Many of the studies used subjective empowerment method,this study can solve this problem by using factor analysis method,and the results of the study is closer to the fact.Furthermore,it can find the relevant factors contribution to the financial risk.By building the evaluation system,it can strengthen the supervision and provide a scientific reference for the financial risk management with DS Company.In addition,it can help the company to improve anti-risk ability and level,the evaluation results of this study can also provide as a reference for related personnel.