Research On Financial Risk Control Of BYD Company Limited

At present,China’s economy is developing rapidly,and Chinese enterprises are struggling for survival and development,but financial risks always exist in the entire operation of the enterprise.If it is not controlled,it is prone to financial crisis.At present,high-tech industries are the focus of our development.Many contributions to the Chinese economy.Many companies in the traditional manufacturing industry have transformed to improve their innovation capabilities.However,high-tech companies have their own unique corporate characteristics,which makes high-tech companies face greater financial risks than ordinary companies.The object of this study is BYD Co.,Ltd.,which is a typical private high-tech enterprise.It has its own core technology for the research and development of new energy vehicles.However,as shown in the financial data from 2014 to 2018,BYD’s quick ratio It has been below the normal level.From 2016 to 2018,BYD’s operating income continued to increase,but its operating profit showed a downward trend.The turnover rate of accounts receivable also showed a downward trend in these three years.These Abnormal data fluctuations indicate that there should be certain financial risks within BYD Co.,Ltd.Therefore,based on the research object of BYD Company,this article selects five years of financial data,uses the company’s financial statements and related financial indicators to deeply analyze and analyze the current financial status of BYD Company,and finds that it exists in terms of profitability,solvency and operating capacity.In view of financial issues,in order to better present the current financial risk situation of BYD,this article selects appropriate risk evaluation indicators according to the characteristics of the company and uses a comprehensive fuzzy evaluation method to evaluate the risk level of the company.The result is that BYD’s comprehensive The financial risk evaluation is only at a general level,and there are poor levels in the evaluation results of specific risk evaluation indicators: operating profit rate,cost expense profit rate,quick ratio,and current ratio.This is the second largest in the world For secondary battery manufacturers and outstanding automakers,this evaluation is not optimistic.Finally,for the problems found in the evaluation of BYD,analyze the relevant factors that caused them to produce these financial problems,and finally propose feasible and reasonable control measures based on this,on the one hand,it can help BYD in the financial risk control To provide some suggestions,on the other hand,it is also a reference for managers of similar companies when studying their company’s financial risks.This article selects BYD Company Limited as the specific research object,because it is a typical private high-tech enterprises,such as its research and development of new energy vehicles has its own core technology,but from the perspective of the financial data of the Company at present,BYD’s finances should exist certain problems,for this,This article selects the enterprise itself and 5 years financial data of 83 companies in the same industry use financial statement analysis to the financial position of the in-depth analysis of byd,again according to the analysis result as well as the company’s own characteristics to select suitable evaluation index by using comprehensive fuzzy evaluation method to evaluate the risk of the enterprise,the enterprise is obtained by the evaluation results in terms of profitability,solvency and capital operations wanting,then analyze the factors that affect the financial risk,on this basis,put forward feasible and reasonable for its control measures,on the one hand to BYD when making financial risk control to provide some Suggestions,On the one hand,it can also provide reference opinions for the management of similar enterprises in financial risk management.