Study On Financial Risk Analysis And Financial Warning Of Storm Group

Due to the imperfection of our market economic system and the defects in the management system and social credit system,financial risks are easy to occur in the production and operation of enterprises.Storm Group was listed on the Shenzhen GEM on March 24,2015,with an opening price of 9.43 yuan.From March 24 to May 21,Storm Group's share price rose to 327.01 yuan.By August 30,2018,the closing price of Storm Group's shares was 10.94 yuan.Within two and a half years,Storm Group's shares fell 96%.Therefore,the study of financial early warning has a strong practical significance.This paper chooses the research method as the case analysis method and the comparative analysis method.Firstly,it elaborates the background and purpose of the research,and reviews the research status of domestic and foreign financial risks and early warning respectively.It also introduces the basic content of financial risk,analyzes its causes,and explains the concept of financial early warning and the function of financial early warning.Then it analyses the characteristics and current situation of Internet information service industry,and analyses the operation status and financial risks of Storm Group.It is found that there are some problems in Storm Group,such as financial leverage exceeding the average level,capital structure is not good,and so on.Finally,according to the specific situation of Storm Group,with cash flow as the starting point,the financial early warning system is established from four angles of debt repayment,payment,profit and development.After verifying the early warning system,it is found that the financial situation of Storm Group in 2016 is a severe early warning,and that in 2017 is a moderate early warning.In addition,this article puts forward some suggestions on the existing problems of Storm Group from the perspective of financing methods and accounts receivable.