Research On Financial Risk Of Diversified Operation Of Dunan Group

In recent years,domestic private enterprises have embarked on a diversified business path in the face of economic development,but diversified operations do not bring lucrative returns to all enterprises.After many private enterprises are diversified,The company's scale has expanded dramatically,but ultimately financial risks have triggered a financial crisis.Therefore,it is of great positive significance for the implementation of diversified enterprises to analyze the reasons for the financial risks of enterprises after they have embarked on the diversified operation path and propose strategies for how to deal with financial risks.Based on the theory of the relationship between diversified operations and financial risks,this paper introduces the current financial crisis of the private enterprise Dunan Group and analyzes the reasons for the diversification of the Dunan Group based on various business data.Then,from the four perspectives of profitability,solvency,cash flow,and Z-score,the financial risks of the diversified operation of Dunan Group are identified,and the impact of the diversification of Dunan Group on financial risks is analyzed based on this.The financial risks of the Dunan Group are a reasonable strategy for the Dunan Group to control financial risks.Through analysis,it was found that the Dunan Group failed to fully study the details of each new industry and blindly explore new business when diversified,which also made the profitability of Dunan Group not effectively improved,resulting in its large Not a strong situation.And because the company's debt financing is invested in a long-term industry,the liquidity of the company becomes extremely unstable,and this diversification will increase the company's liabilities and increase the leverage of the enterprise;Investing can only carry out debt financing,creating a vicious circle trend and bringing financial risks to the company.Although the Dunan Group eliminated the debt crisis,the financial situation of the company after the crisis is still under pressure.Therefore,in order to reduce the financial risk of Dunan Group,this paper puts forward some strategies to control the financial risk of Dunan Group to avoid the financial crisis again from the perspectives of profitability,liquidity and optimization of corporate debt.I hope that it can be the Dunan Group.Provide reference.The paper concludes with the following conclusions: First,the Dunan Group does have financial risks in the process of diversification,and the financial crisis has led to a debt crisis.The financial risks of the Dunan Group include the following aspects: First,the newly entered industries have reduced profitability due to various internal and external factors,and the investment costs have not been recovered.Secondly,a large amount of capital invested by enterprises in real estate and new energy industries,and the investment cycle of these industries is long,leading to the break of the capital chain of enterprises and the formation of financial risks.Finally,the company's assets and liabilities rise,financial leverage increases,and debt management has reached a state of chaos.Second,after the Dunhuang Group has resolved the debt default crisis,it can control financial risks from the perspectives of profit,cash flow and liabilities: including rational selection of diversified investment fields,increasing corporate profit margins;transferring risks to avoid profit fluctuations;Structure and rational allocation of corporate cash flow to enhance corporate credit rating in several aspects.