Research On The Financial Risk Assessment Of Zhenxing Biochemical Co.,Ltd

In recent years,corporate bankruptcy and takeover cases have occurred from time to time,and some large companies are also in danger of being acquired,the reason is that due to the financial risk of the company,the capital chain breaks,leading to the dilemma,and thus being bankrupted or acquired.With the development of economic globalization,the business environment is complex and changeable,and the company's financial risks are growing.Therefore,the company effectively identifies risks based on financial status and objectively evaluates the size of financial risks,which provides a basis for the control of financial risks and is increasingly important for the sustainable development of the company.Based on the theory of financial management,this article is based on the review of the relevant literature on corporate financial risk assessment,based on the Zhenxing Biochemical Co.,Ltd as the research object.Explain the company's development status,industry characteristics,financial status,analyze the four major financial risk factors,namely financing risk,investment risk,working capital risk and dividend distribution risk,of the Zhenxing Biochemical Co.,Ltd,based on the corporate fund movement,and conduct an in-depth analysis of its causes.Then,drawing on the empirical research results of domestic and foreign scholars and combining with the actual conditions of Zhenxing Biochemical Co.,Ltd,four dimensions are derived from financing risk,investment risk,operational risk,and dividend distribution risk.construct a financial risk evaluation index system for Zhenxing Biochemical Co.,Ltd,adopt a factor analysis method,and establish a financial risk assessment factor analysis model for Zhenxing Biochemical Co.,Ltd.Select 27 quarterly financial data released by Zhenxing Biochemical Co.,Ltd from 1st quarter of 2011 to 3rd of 2017 for empirical analysis.Finally,make recommendations based on the company's major financial risk control measures.The research in this paper can provide references for the identification and evaluation of the financial risk of Zhenxing Biochemical Co.,Ltd,which is of great significance for improving the control level of the company's financial risk.