A Study On Financial Risk Identification And Control Under Asset-light Strategy

With the successful transformation into asset-light strategy in many large companies,more and more companies are targeting this kind of strategy.Although asset-light strategy has unique advantages compared with the traditional business model,enterprises are often engaged in R&D and marketing areas,in which gain higher return on assets.The company has less investment,higher returns,and grow faster.However,there are hidden financial risks behind these advantages.Compared with the “ heavy asset ” business model,the lower fixed assets ratio under the asset-light strategy has greatly weakened the ability to resist risks.Outsourcing supply chain,on the one hand,enterprises tend to lose control over product quality;on the other hand,it may lead to the leakage of core technology.Therefore,this paper intends to use the combination of theory and case to analyze the financial risks of the asset-light strategy for the specific situation of Li Ning Company,and propose corresponding countermeasures.This paper firstly combs the current research on the financial risk of light assets,and refines the background,characteristics and financial risk characteristics of asset-light strategy,and then conducts an in-depth analysis of Li Ning's case.In the case analysis section,I first give a brief introduction to Li Ning,including its development history and its light asset characteristics.After the background introduction,the financial risks of Li Ning are identified through financial analysis and risk identification models,and the specific performance and causes of the existing financial risks are analyzed.In the process,it was found that Li Ning's development in the past few years has no longer had the advantage,and the gap with other competitors in the same industry has also expanded.Li Ning's asset turnoverefficiency is too low,and the inventory backlog is a serious problem.Excessive cost has affected both the profitability and the profit quality of the enterprise.Li Ning Company is lacking of professional and effective relationship to the supply chain,and the positioning of the brand is not clear as well.These problems have brought a certain degree of risk to the enterprise.After identifying the financial risks,this paper proposes a series of measures to control financial risks,such as strengthening supply chain management,improving asset turnover efficiency,controlling costs,and clarifying corporate brand positioning,etc.From this case,there are also many inspirations for how similar companies should do to deal with and prevent similar financial risks.First of all,for light asset companies,clear brand positioning according to the needs of consumers and company's actual situation is of top priority for the company's survival and development.If the brand is not properly positioned,it will bring a series of negative impacts on the production and operation of the company;Secondly,we should not only focus on expanding the market size of enterprises but also on capital use efficiency.Thirdly,light asset companies need to strengthen management and control of supply chains,strengthen cooperation between upstream and downstream partners in supply chains,maintain timely delivery of information,and improve the overall turnover efficiency of the supply chain.