Research On Financing Risk Evaluation And Control Of LC Company

Automobile industry has ushered in a new era of transformation and upgrading in our country since 2020.The new pattern of "One Belt And One Road" and "all-round opening up" come into being,which means that China’s automobile industry will further face the international market,and the industry competition will be more intense.The implementation of "supply-side reform","green innovation" and other strategies means China’s automobile industry must improve its core technologies and take the road of high-quality development.Therefore,the enterprise needs to raise a lot of funds,expand the scale of the enterprise,introduce technical personnel,achieve industrial transformation,etc.Funding is the starting point of enterprise capital movement,which is an important link to determine the scale of enterprise capital movement and the degree of production and management development.It will bring huge risks and hidden dangers to the enterprise with improper financing.So it is very necessary to do research on the financing risk of automobile enterprises.LC Company is the research objects of this article,which is specializing in on-board navigation,intelligent vehicle and Internet of Vehicles.It was with a registered capital of 120 million yuan and listed on the Shenzhen Stock Exchange in 2016.During the four years listed on Stock Exchange,LC Company has always maintained a state of high financing.It raised funds from a lot of short-term loans,the transfer of subsidiary equity,borrowing from related parties and other ways.The company was mainly with short-term financing and resulted in the continuous rise of short-term loans.The amount of loans reached a peak of 500 million in 2018.In addition,the ratio of current liabilities was more than 90%.The extremely high proportion of short-term liabilities made the company face great repayment pressure,and the financing risk became prominent.The net profit had been reduced from 2016.This thesis deeply analyzes the main financial data,debt scale and financing methods of LC Company with the help of risk management theory and capital structure theory from 2015 to 2019.It finds that LC Company has problems such as large debt scale,unbalanced structure,insufficient capital recovery capacity and large growth of limited assets.It uses factor analysis method to construct an evaluation model of fundraising risk,and chooses 16 indexes according to the principle of comprehensiveness,relevance and operability on the basis of risk identification.It has constructed the financing risk index system,established factor analysis model after applicability test,and evaluated LC Company’s financing risk from vertical and horizontal sides.It puts forward the methods and suggestions to control the financing risk pointedly in four dimensions:Determined the financing structure consistent with the development of enterprises,expanded various financing channels,strengthened cost,inventory and accounts receivable management,established a sound financing risk control system.This is the wish of helping automobile companies to be more reasonable in the prevention of financing risk.