Research On Financial Risk Evaluation And Control Of Beiqi Foton Motor Company

Since new energy vehicles have become a strategic emerging industry,the government has given greater support to new energy vehicles in such aspects as subsidies,taxes and driving restrictions,so that new energy vehicles can achieve fast development and make profits.However,in 2017,government subsidies has been gradually tightened,and the conditions for obtaining subsidies are more stringent which takes a long time.Coupled with the upcoming implementation of national VI emission standard,automobile companies can not easily obtain large subsidies,and they have to increase investment and research and development,which easily lead to financial risks.Foton is a large-scale listed company which manufactures commercial vehicle and passenger vehicle.Foton relies heavily on government subsidies.It is likely to face severe financial risks.Therefore,it is necessary to prevent and control financial risks to avoid spreading and lead to financial crisis.From the perspective of financing risk,investment risk and operational risk,this article analyzed the financial report of Foton from 2013 to 2017 and related industry data to expound the financial risk status of Foton.Then the author think that financial indicators should be selected from three dimensions: financing risk,investment risk and operational risk.The financial indicators are applied for the analytic hierarchy process to evaluate financial risk.It is concluded that financing risk is the primary,followed by operational risk and investment risk.And then according to the total sequencing weight of each level,the asset-liability ratio,the cash ratio of the earning and the current ratio are the main factors which affect the financial risk.Finally,aiming at Foton's financial risk status and the results of financial risk evaluation,financial risk control measures are put forward from the overall level of company and financial activities two aspects.The overall level of control mainly put forward to establish the risk compensation mechanism,sign the contract and pre-warning mechanism offinancial risk;The control of the company's financial activities includes three aspects: First,the company can take measures to adjust the capital structure and adopt diversified financing methods to control investment risk;Second,management and control of operating risks can be carried out by strengthening account receivable management,strengthening the forecast of cash flow and adjusting dividend policies.Third,by strengthening the feasibility analysis of investment projects and risk management of investment projects,Foton can obtain the maximum return with the minimum risk.Based on the above analysis,the conclusions of this paper are: First,the current situation of Foton financial risk is not optimistic,there are problems such as unreasonable capital structure,unbalanced investment distribution and the lack of cash;Second,the financial risks faced by Foton are financing risk,operational risk and investment risk in order,which are mainly reflected in the asset-liability ratio,cash ratio of earning and current ratio.Third,in order to reduce the financial risk negative effects on the company effectively,prevent financial conditions deteriorate further,and achieve the company long-term development,the article think that should consider Foton's business characteristics and actual situation,use the risk bearing,risk transfer,risk prevention to establish the overall level of risk prevention mechanism,and attache great importance to strengthen the financial activities in the evaluation and control of financial risk to ensure every aspect of business activities are normal.