Research On Financial Risk Analysis And Prevention Strategy Of M Coal Company

Enterprise risk is a variety of uncertainties faced by enterprise operations.Financial risk is a major risk that must be avoided in corporate operations.Traditional companies have huge shortcomings in risk management and control.With the development of market economy,the independent status of companies in the market economy is becoming more and more important,and the control of financial risks It is an important guarantee for the healthy development of the enterprise.Whether it is financing risk,investment risk,business risk,cash flow risk or market risk,only by exploring the causes of risk and grasping the characteristics of the risk can it be possible to control the risk within an acceptable range.The coal industry is an important energy and raw material industry in the country,which has a great impact on the national economy.After decades of development,my country's coal enterprises have gradually become saturated with the market,forming high inventories,high costs,high debts,and low development.Risky industry.In 2015,coal companies ended their 10-year glorious period and faced great challenges.Problems such as slow development,overcapacity,and unreasonable product structure have gradually emerged,which has led to increased financial risks in the coal industry.In 2016,the state introduced the “three removals,one reduction and one subsidy” policy,which undoubtedly brought huge impacts to the coal industry.Challenges,so this article takes M Coal Company as an example,selects the financial data from 2017 to 2019,systematically combs the research results of contemporary financial risks,and uses the financial indicator analysis method to analyze the actual situation of M Coal Company on the basis of field research.The status quo was analyzed,and the causes of financial risks were explained.From this,it was concluded that Company M has the risks of single financing channels,reduced product profitability,account receivables occupying funds and increasing corporate inventories.These risks The cause is consistent with the current macro difficulties in the coal industry.On this basis,the efficiency coefficient method is used to evaluate the financial risks of M company.From the comprehensive evaluation results,the financial performance of M company is not very good,and the situation is more serious.It is urgent to expand the efforts to strictly control this situation.Based on the above analysis and evaluation results,relevant countermeasures to deal with the financial risks of M company are proposed,which can reduce corporate risks by broadening financing channels,strengthening the management capabilities of pre-prediction,in-process control,post-analysis,and improving inventory management.Enterprise Development.The operating conditions and operating risks faced by M Company are representative of the coal industry.Therefore,the results of this research can also become a standard for companies in the industry to choose and refer to,which is conducive to promoting companies in the industry to resolve financial risks and promote their healthy development.