A Real Estate Company Financial Risk Case Study

The financial risk of the enterprise exists objectively,which is accompanied by the whole process of production and operation of the enterprise.Financial risk is likely to occur in all aspects of financing,investment,operation,capital recovery and income distribution,and financial risk is the centralized embodiment of the whole process of enterprise production and operation.As the real estate industry has its own characteristics such as large capital investment,long development cycle,slow capital recovery and great influence on national policy,the real estate industry is a high risk industry.As the economic main body of the real estate industry,the real estate enterprises are particularly out of the financial risk.In the past twenty years,the real estate industry,as the pillar industry of the national economy,has made a great contribution to the growth of GDP in China through the rapid development of the upstream and downstream industries.In recent years,the irrational rise of house prices and the rise of speculative housing have attracted wide attention from the whole society.In order to keep the real and stable development of the real estate market,the government has made and implemented a series of measures to regulate the real estate market,Thus,the uncertainty of real estate market is increased and the financial risk of some real estate enterprises is increased.At present,our country real estate industry concentration degree is more and more high,the market size of the top 100 real estate rises year by year,the market share rises to 47.7%in 2017,the small and medium sized real estate company is more and more risky.Some real estate enterprises have been in financial trouble,and some real estate enterprises have been declared bankrupt because of financial difficulties.Therefore,timely identification of financial risks and prevention of financial risks has always been an urgent problem for Chinese real estate enterprises.Firstly,this paper introduces the background of the topic and the significance of the study,and combs out the research results on financial risk at home and abroad.Then the concept of financial risk of real estate enterprises is defined,and then the present situation of financial risk of real estate companies in China is analyzed,and the reasons for the formation of the financial risk of the real estate company in China are studied.On this basis,taking A real estate company as a case study,using comparative analysis and qualitative and quantitative analysis method to identify the financial risks of the existence of A Real Estate Company,It is found that A Real Estate Company has the following financial risk problems:high asset liability rate,high financing cost,single fund-raising channel,long project development cycle and slow inventory rate.Then the formation of the financial risk of A Real Estate Company is analyzed from two dimensions inside and outside the enterprise.Finally,the case of A real estate company's financial risks brought to other real estate companies brings inspiration,in order to provide reference for the prevention of financial risks of other real estate companies.