Research On Financial Risk Assessment Of PTG Company

With the implementation of the new food safety law on October 1,2015,China's supervision over the food industry has been strengthened.With the implementation of the law,it not only puts forward new requirements for food processing enterprises,but also creates opportunities for the emerging food industry.At the same time,as the organic food industry in China is in its infancy,most of the enterprises in the industry are in the growth stage,and mainly small and medium-sized enterprises.At the same time,according to the fourth national economic census,by the end of 2018,China's small and medium-sized enterprises accounted for 99.8% of corporate units and more than 200 million people employed.Therefore,small and medium-sized enterprises are the most innovative and endogenous driving force in China.In the process of development,small and medium-sized enterprises are limited by their size and volume,and have many problems such as single financing channels and unstable capital chain,which make them face many difficulties in the process of development.This means that small and medium-sized enterprises in the organic food industry,to some extent,face high financial risk.Therefore,it is an urgent problem for small and medium-sized enterprises to find out financial risks and crises in time and take effective preventive measures to avoid actual losses.Therefore,this paper takes PTG,a high-quality representative enterprise in the organic food industry of Jilin province,as a case study.By reading and sorting out relevant literature at home and abroad,and according to relevant theories of financial risk assessment,this paper identifies and analyzes the financial risks of PTG from four aspects:financing,investment,operation and income distribution.Then,the analytic hierarchy process(AHP)and efficacy coefficient method were used to construct the financial risk evaluation system of PTG company,and the corresponding evaluation results were obtained and verified.According to the evaluation results,PTG company's financial risk is in the intermediate warning level,among which the financing risk and operation risk are relatively serious.Although the risk level of investment and income distribution is relatively low,it still needs PTG company to timely guard against it.Therefore,this paper,based on the identification and evaluation results of PTG's financial risks,formulated corresponding risk prevention measures from four aspects of financing risk,investment risk,operation risk and income distribution risk,such as establishing diversified financing channels and determining the best capital structure.Diversified investment enables idle funds to be effectively used.Meanwhile,enterprises can also improve their ability to resist risks by purchasing corresponding insurance or signing emergency funds with Banks.Strengthen the supervision ability of accounts receivable and inventory,and strengthen the supervision ability of funds;Reasonable distribution of profits to ensure the healthy development of the enterprise and otherSuggestions.It is hoped that the research in this paper can objectively evaluate the actual level of financial risk of PTG company,and at the same time provide corresponding ideas for PTG company to improve its financial risk prevention ability and promote sustainable development.