Research On Financial Risk Of Youon Company

With the rapid development of China's economy and the continuous improvement of science and technology,the connection of online data with offline physical objects through the Internet has been widely applied in various scenes of life.In the age of the Internet of Things,sharing economy has changed people's consumption concept and living habit in different aspects,such as food,clothing,shelter and transportation.Ride sharing,as the core representative of sharing economy,also becomes more diverse to meet the travelers' demands,and consequently such services as online car-hailing,bicycle sharing and car sharing services have been launched.The concept of ride sharing itself is advocated by our county and society,as it can not only meet people's travel demands,but also alleviate the environmental pressure and traffic pressure of the cities by means of green travel.However,the current development status of ride sharing industry is not optimistic.Many enterprises suffer the break of capital chain without realizing the effective operation of capital and then close down one after another.It is hard for even well-capitalized enterprises to fully profit from this industry.This phenomenon arises mostly because enterprise managers lack the awareness of financial risks.As a result,ride sharing enterprises cannot find a reasonable profit-making model.This paper,taking Youon Company as an object of case study,finds its internal financial problems based on the analysis of financial risks from four aspects and then puts forward some reasonable suggestions.Under the guidance of theory of financial risks,this paper,taking the current development situation and existing financial problems of Youon Company as the logic starting point,reviews the literature relating to sharing economy and ride sharing in recent years,defines the theoretical framework of financial risks,analyzes from four dimensions,namely,financing risk,investment risk,capital recovery risk and income distribution risk and finds the Company has the following financial risks:during the process of enterprise financing,due to the managers' failure to attachimportance to debt financing and too much dependence on investors' investment,the risk of financing cost is too high;in the investment activities,the Company is at the stage of rapid expansion,and therefore considerable investment could lead to relatively great investment risk;during the fund recovery,as approval of collection from the Company's government customers involves complicated procedures,many accounts receivable could be produced,thus leading to slow turnover of accounts receivable and causing the risk of weak fund liquidity;during the income distribution,the Company tends tore serve the operating profit for reinvestment,and leave investors less distributable income,which is likely to cause investors to become less willing to invest,and result in the income distribution risk that is not conducive to the Company's long-term development.Aiming at solving the financial risk problems existing in Youon Company,this paper puts forward some suggestions for improvement based on the specific analysis:adjust the financing structure of enterprises,seek diversified and long-term financing combination,and give full play to the tax-saving function of debt financing on the premise that the financing risk is under control;plan the investment strategy scientifically,make full investigations of and have reasonable expectations for investment projects,and make investment decisions according to the market demands;establish the management mechanism for accounts receivable,incorporate credit review and recover the funds timely to reduce the possibility of bad debts;and develop a stable income distribution policy according to the enterprise's operating environment.In general,ride sharing is an emerging industry full of opportunities and challenges.How to explore more effective profit-making mechanism and corporate financial risks simultaneously is a problem that must be taken seriously to promote the healthy development of ride sharing industry.