Research On Financial Risk Analysis And Evaluation Of Huatian Hotel Company

With the further development of China’s economy and the proportion of tertiary industry is increasing,the hotel industry also achieved rapid development,investors and speculators are flocking,and the hotel construction has been accelerated.However,with the rapid expansion of the hotel industry,there have been a series of problems,such as poor hotel management,lack of awareness of market crisis,and weak risk awareness.After joining the WTO,it is easier for international hotels to enter the Chinese market,the competition intensifies,and the risks of enterprises are increasing,especially financial risks.Thus it can be seen,it is necessary for the hotel enterprises to analyze and evaluate the financial risks so as to prevent the financial crisis.This paper selects the earlier listed Huatian hotel as the research object,as the first tourism listed company and the first five-star hotel in Hunan province,Huatian hotel has experienced different development stages of the hotel industry.Through the in-depth analysis and evaluation of the financial risk of this enterprise,this article hope that the management can realize the seriousness of the risk and take timely measures to deal with it,and also provide references for other enterprises in the hotel industry to deal with financial risks.On the basis of the theory of financial risk related,this paper analyzes the risk status and causes of the Huatian hotel by using the case study method,It is found in the industry context that the government consumption in high-end hotels are sharpping decline and the competition between enterprises is intensifying.Huatian hotel has serious financial risks due to its unreasonable decision-making in financing and investment.Then this paper selects 12 indexes from four aspects of debt paying ability,profitability,operating ability and development ability,uses objective index weighting method and improved efficiency coefficient method to explore the financial risk assessment system suitable for Huatian hotel and quantify the degree of risk to the company.By bringing in the original data of the enterprise,it is found that the current multiple indexes of the hotel are deteriorating,the degree of risk is a significant risk and the result of the comprehensive evaluation is a huge warning.In combination with the degree and the cause of the financial risk of Huatian hotel,this paper puts forward relevant suggestions for the enterprises.The enterprises should strengthenfinancial risk awareness,sound the financial early warning mechanism,widen the financing channels to optimize the capital structure,make investment decisions judiciously and strengthen the management of accounts receivable,so as to control the financial risk.