Research On Financial Risk Assessment And Control Of MH Chemical Company

With the development of social economy,more and more kinds of financial risks are faced by company operators,from the initial single analysis of profitability based on profit Fundamental analysis,gradually transition to multiple financial statements combined with multi-objective,multi-content financial analysis.In order to provide more efficient decision-making reference for different users of enterprise financial statements,it is more important to establish a reasonable financial risk evaluation system.In recent years,a lot of changes have taken place in China's industrial structure and social consumption structure,and the development of the industry has been moving towards a lean direction.As one of the pillar industries of China's national economy,the chemical industry,there have also been a series of changes in its industrial structure and management,and in practice,compared with the past,in recent years,as market competition intensifies and production costs rise,some chemical companies,especially small and medium-sized chemical companies,are facing difficulties in their operations and are exposed to more and more financial risks.Therefore,taking chemical companies as a case study,the financial risks of chemical companies are quantified,it is important for chemical companies to adjust their management strategy and take financial risk control measures to adapt to the new market competition.In this paper,MH Chemical Company is taken as the research object,based on the introduction of relevant theories,the present situation of financial risk evaluation of MH Chemical Company and the problems existing in financial risk evaluation are analyzed,and MH chemical company financial risk evaluation,finally,the risk control countermeasures.The results show that MH chemical company's profitability index is in the middle and upper position of the industry from 2016 to 2018,but the profitability is on the decline trend,the turnover of accounts receivable and the turnover of inventory are not good,there is a risk that the capital can not flow back,there is a bigger hidden danger in operating capacity;the company has a better solvency,the probability of hidden financial risk is very small;the company's growth capacity is worrying,there is a risk of weak growth.The results of financial risk evaluation showed that MH chemical company's comprehensive financial risk evaluation scores for the three years from 2016 to 2018 were 0.89,0.85 and 0.78 respectively,and the overall financial risk grade declined from no-alarm zone to light-alarm zone,the risk becomes greater.The results show that the three-year profit risk score is 0.94,0.94 and 0.90,respectively,and the three-year operational risk score is 0.70,0.70 and 0.55,respectively,the results show that MH chemical company has poor operation,low operating efficiency and high probability of financial risk,the three-year score of debt-paying risk is 1,which lies in no-police zone,and the three-year score of growth risk is 0.99,0.77,0.73 respectively,the transition from no-police zone to light-police zone indicates that MH chemical company's initial growth ability is abnormal,which is a risk of concern.In view of the financial risk problems faced by MH chemical company,this paper puts forward the financial risk control measures,such as perfecting the cost control responsibility system,perfecting the business model,establishing the perfect account receivable management mechanism,strengthening the aging analysis,to realize the whole process of inventory control,reasonable allocation of long-term and short-term debt structure,enhance the core competitiveness of the market,etc.,MH chemical company's long-term development to provide recommendations.