Research On Financial Risk Control Of Luoyang Glass Co., Ltd

The quality of business development of an enterprise can be clearly reflected by its financial status.As a signal to measure the financial status of an enterprise,financial risk affects the enterpr ise's ability to repay debts,operate,make profits and develop.The rapid growth of China's economy has led to the rapid growth of the real estate industry,At the same time,it also led to the rapid growth of building materials industry.The glass industry has also experienced a rapid growth stage.However,due to the changing industry environment and fierce competition in the market,the traditional glass industry is not very effective.Many traditional glass enterprises are facing serious financial risks.Some traditional glass enterprises begin to carry out industrial transformation.Luoyang glass is a typical example of the transformation from traditional glass to ultra-thin glass.In this rapidly changing economic environment of market economy,It is both an opportunity and a challenge for luoyang glass to fully march New type of glass Market,In order to ensure that enterprises can achieve healthy and orderly development after transformation and effectively control financial risks,it is necessary to make detailed analysis and evaluation of the financial risks of the company and adopt effective financial risk control measures to improve the ability of enterprises to control financial risks.Firstly,the related theory of financial risk is elaborated,including the content of financial ri sk,information asymmetry theory,MM theory,etc.Secondly,according to the data of financial s tatements of Luoyang Glass from 2014 to 2018,the current situation of financial risk of the com pany is elaborated,and the causes of financial risk of the company are found.Then select more t han a dozen representative financial indicators and use the financial indicators analysis method t o evaluate the financial risk degree of the company from four angles: financing risk,capital flow risk,operation risk and cash flow risk.Then use the F-score model analysis method to calculate t he F value of the company,and determine that the financial risk level of the company from 2014 to 2017 is a serious level,and 2018 is a serious level.The company's financial risk rating is large r.Finally,according to the status quo,causes and financial risk analysis results of the company's financial risk,the corresponding financial risk control measures are put forward,in order to provi de reference for company managers.