Research On Financial Risk Prevention Of CW Group Based On Financial Indicators

In recent years,the drastic changes of domestic and foreign economic environment have put forward higher requirements for enterprise management.Financial risk,as an important form of risk,posing a serious threat to the survival and development of enterprises.Whether managers can correctly analyze the internal and external environment,identify potential risks,and take effective measures to resist risks is a test that modern enterprises must face.The 21 st century is a century of intelligence and informationization.With the rapid progress of mobile Internet,shopping has moved from offline to online.the online consumption platforms represented by "Tianmao","Jingdong" and "Pingduoduo" have attracted more and more consumers and are changing the consumption habits of Chinese people.With the continuous development and expansion of e-commerce,the living space of physical retail department stores is increasingly squeezed.Facing the general trend of slowing down economic growth in China and the impact of major e-commerce platforms,traditional department stores must identify and evaluate financial risks in time,check for deficiencies and make up for deficiencies,achieve successful transformation and survive the cold winter.CW Group is a well-known department store.In recent years,it has been greatly impacted by the e-commerce platform,and the sales growth rate has been declining.Therefore,this paper chooses CW Group as the research object.According to its financial status in the past five years,it uses PEST analysis method and financial index analysis method to preliminarily analyze the status quo of internal and external risks of CW Group.Combining with the method of entropy and efficiency coefficient,the overall risk situation of enterprises is evaluated.On this basis,Chapter IV of this paper,based on the perspective of financial management,uses Dupont analysis method and comparative analysis method to analyze the return on net assets and sales growth rate of CW Group,and combines with the current situation of CW Group.The study finds that the high human cost,rental cost and depreciation cost are the important factors affecting the return on net assets of CW Group.On the other hand,the high proportion of joint ventures and the backward business model are the main reasons for the decline in sales of CW Group.In view of the above reasons,this study proposes measures to reduce labor costs and establish a mobile phone purchase mechanism,aiming to help enterprises improve their profitability and development capabilities,and reduce risks.