Taiyue Company Financial Risk Assessment And Countermeasure Research

Since China entered the new normal economy,it is in a critical period of transformation and transformation.The continuous development of the economy and the increasingly fierce market competition make enterprises face great and small financial risks while seeking their own development.This is especially true for China's construction industry.Due to the rising price of construction raw materials and labor costs in the past two years,compared with other large construction enterprises,the living environment of small and medium-sized construction enterprises is more difficult,and the probability of financial risk will be higher.As a member of small and medium-sized construction enterprises,Taiyue Company is facing such a severe test that there are serious hidden dangers in the financial risk situation,even affecting the normal operation of enterprises.Therefore,what are the financial risks of Taiyue Company? What specific factors lead to the occurrence of financial risks in Taiyue Company,and what measures can management take to avoid financial risks? All these are of great significance to the development of Taiyue Company administration.Firstly,this paper makes an analysis of the relevant literature on financial risk at home and abroad,and briefly states the theory of financial risk management and financial risk evaluation.Taking Taiyue Municipal Government as a case enterprise,combining with the industry characteristics of small and medium-sized construction enterprises,and based on the financial data of Taiyue Municipal Government from 2016 to 2018,this paper chooses some financial indicators to analyze the financial risks of enterprises from four different aspects: financing,investment,operation and income distribution.According to the analysis and understanding of Taiyue Municipality,it also combines with the Enterprise Performance Evaluation Practice promulgated by SASAC.To make detailed rules,12 financial indicators which can represent the financial situation of Taiyue Municipal Government are determined,including asset-liability ratio,cost-cost-profit ratio and turnover rate of accounts receivable.The weight of each indicator is determined by using analytic hierarchy process,and the financial risk evaluation system of Taiyue Municipal Government is constructed.The financial risk of Taiyue Municipal Government is improved from two aspects of financial indicators and non-financial indicators,respectively.Comprehensive evaluation was carried out.The study finds that Taiyue Municipality has great financial risks,unreasonable structure of short-term and long-term debt repayment,decreasing net assets,high risk coefficient of profitability,and increasing business income,but decreasing growth rate.The causes of financial risks of Taiyue municipal government are analyzed from both inside and outside.The main internal causes are: single financing channel,imperfect mechanism of accounts receivable,backward management mode,imperfect internal control,etc.The main external causes are that the enterprises' coping strategies are not timely after the implementation of the "business-to-increase" policy,the enterprises' structure is not optimized in time under the influence of environmental control,and the enterprises are actively building green.Color project.Finally,the paper puts forward relevant solutions to the specific problems of the company: broadening the financing channels,establishing and improving the customer credit system,improving the company's internal risk management and supervision system,and so on.The conclusion of this paper has a certain reference value for the identification and evaluation of financial risk of small and medium-sized construction enterprises.