Z City Investment Corporation Financial Risk Analysis

The Urban Investment Corporation was established in 1991 and is responsible for the city's infrastructure construction.As a government-controlled investment financing platform,it has played a very active role,especially after the country introduced a stimulus policy of 4 trillion investment in 2008.This provides a good opportunity for the development of the City Investment Corporation.After going through the golden period,each city investment company has achieved a good development and its asset scale has gradually grown.However,with the rapid expansion of debt financing scale,the financial risks of urban investment companies have also begun to highlight,and it also poses a threat to local financial and financial stability.For urban investment companies,how to solve the financial risks that exist today,establish a correct concept of risk,and optimize financial management systems and processes,this is not only conducive to the solution of corporate financial risks,more importantly,the long-term and healthy development of enterprises,and thus Urban construction to better serve the place.This article takes Z city Investment Company as the research object.First of all,it analyzes the background and development history of the entire city investment company,and then analyzes the status of the city investment company's financial risk.Then the specific analysis of the Z company's basic situation and operating model,and select the company's annual financial report 2014-2016 related financial indicators for analysis,initially reached the company in what areas there are problems.Then build a comprehensive evaluation system for financial risks,evaluate whether there are financial risks in the company from the whole,and use the F value model to verify the Z city company's comprehensive evaluation results of financial risks,and finally obtain a comprehensive evaluation result of Z company's financial risk situation.From the research,it can be found that Z city Investment Company has the following financial risks: insufficient debt repayment ability,poor asset liquidity,partial liability level,and low profitability.Finally,for the above issues,the corresponding countermeasures and suggestions are proposed.Mainly include:(1)Optimize the capital structure,appropriately reduce the asset-liability ratio,enhance long-term debt repayment ability,(2)diversify operations,increase profitability,(3)expand financing channels,innovate financing methods,and(4)increase government support(5)Establish an effective financial early warning mechanism.It is hoped that the research in this article will help Z city investment company to identify and prevent financial risks so as to realize the long-term healthy development of the company.At the same time,I also hope that this article has some reference significance for other similar city investment company's financial risk prevention.