Research On Financial Risk Of Vanke

With the population increment decreasing year by year and the population structure changing,people's demand for housing is more fine,the concentration of real estate industry is higher and higher,and the competition is more and more fierce.For the real estate industry,the era of rapid growth is over instead of just getting a piece of it.According to the data published in the China Real Estate Development report 2018,by the end of 2017,the balance of real estate loans had risen in proportion to the balance of loans from financial institutions,rapidly approaching the warning line for the bursting of the bubble.The risks faced by the real estate industry are increasing.The real estate industry belongs to the capital intensive industry,has the characteristics of large investment amount,long development cycle,high management risk,long supply chain and so on.Its financial risk has been concerned by people all the time.As a benchmark enterprise of the domestic real estate industry,Vanke is the benchmark enterprise of the domestic real estate industry.Some scholars have studied their financial risks from the aspects of profitability,solvency,operational ability and growth ability.However,the selection of financial indicators is not consistent with the internal consistency of the economic activities of enterprises.This paper starts from the perspective of working capital security capacity.It has certain research significance.Based on the latest research on financial risk,this paper studies the financial risk of Vanke real estate from the perspective of working capital security ability.First of all,the related literature on financial risk and working capital at home and abroad are summarized and briefly evaluated,and according to the latest research results,the theory of working capital security capacity is expounded and analyzed.At the same time,combining the financial risk theory of domestic and foreign scholars and the characteristics of the real estate industry,this paper summarizes the financial risk of the real estate industry.Secondly,Vanke's financial risk and working capital security capabilities from 2014 to 2017 were analyzed and compared with rival Poly.Finally,the financial risk evaluation system is constructed.18 financial indexes are selected from five dimensions: the quantity of working capital guarantee,the quality of working capital guarantee,debt service ability,profitability and development ability,and the weight of each financial index is determined by entropy method.On this basis,through the correlation analysis to select the appropriate indicators to study Vanke real estate financial risk,finally through the improved efficacy coefficient method to calculate the score.Through the case analysis,it is found that the working capital turnover rate of the production channels of Vanke Real Estate is low,affecting the efficiency of working capital use,increasing the demand for working capital,and relying on short-term financial liabilities,affecting the supply of working capital,but its specialization.The refined business model improves the profitability and development ability of the enterprise,and provides the guarantee for the supply of working capital.Generally speaking,Vanke Real Estate has a small financial risk.Therefore,it is suggested that Vanke should improve the utilization rate of funds in production channels,reduce the level of capital occupation in inventory,allocate working capital rationally by actively utilizing its own funds and widening financing channels,and control the quantity and quality risks of working capital guarantee.