The Research On The Analysis And Control Of Financial Risk Of AG Company

Iron and steel industry is an important basic industry of the national economy and the cornerstone of the country.For a long time,the iron and steel industry has provided an important raw material guarantee for national construction,strongly supported the development of related industries,and promoted the process of industrialization and modernization in China.At present,China's economic development has entered a new normal state of speed change,structural optimization and power transformation,and has entered a key stage of comprehensively promoting structural reform on the supply side.The iron and steel industry is also facing severe challenges such as declining demand,excess capacity and insufficient effective supply.The realization of supply-side reform has become the primary task of the iron and steel industry.Supply-side reform can help steel enterprises achieve resource integration and adjust their industrial structure to improve the current predicament,but it also brings tremendous pressure to many steel enterprises in the process of supply-side reform.As a listed subsidiary of Anshan Iron and Steel Group,a large state-owned iron and steel joint venture,AG company is facing the problems of declining demand and excess capacity.The financial situation of AG enterprise is not optimistic and there are great risks.In the critical period of supply-side reform,AG should pay more attention to its own financial risks and take preventive measures.Firstly,this paper identifies the financial risk of AG company from four aspects: financing risk,investment risk,capital recovery risk and income distribution risk and analyses the influencing factors of each risk,so as to grasp the financial deficiencies of AG stock in general.Then,factor analysis method is introduced to select financial indicators from four aspects of solvency,profitability,operation ability and development ability.A financial risk evaluation model of iron and steel enterprises is established to quantify the risk degree of debt servicing,profitability,operation and development of AG company and the risk degree of enterprise as a whole.The level of financial risk-free of AG in listed iron and steel enterprises is defined,and the level of financial risk-free of AG company.The priorities of financial risks provide direction and basis for financial risk control.Finally,aiming at the causes of financial risk of AG,specific and feasible risk prevention and control measures are put forward,which can effectively deal with the existing and potential financial risks and avoid AG company falling into financial crisis.