| In recent years,the development of BYD has mostly relied on government policy support and guidance,which has enabled the company to develop rapidly.With the continuous changes in policies,the reduction of subsidies and the upgrading of requirements,enterprises at the end of the industry are undoubtedly eliminated.For BYD,it is necessary to seek additional sources of funds.In the absence of a very complete market mechanism for new energy vehicle companies,and government subsidies have been repeatedly tightened,how companies should avoid financial risks and how to enhance financial stability is also particularly important at this time.As early as 2003,BYD was based on product research and development,and its scale has continued to expand.The support of the government has undoubtedly played a key role.Even if BYD is in a leading position in the industry,the company still has risks in terms of operating capacity,profitability,and solvency.At a certain stage,even if BYD has achieved rapid development by relying on external policies and corporate efforts,there are still few studies on the analysis and prevention of corporate financial risks.This article uses BYD as a case study to improve the risk management system,evaluate the financial risks of BYD,make up for the shortcomings of its production and operation,and enhance consumer confidence.Therefore,BYD’s research has played a demonstrative role.The study of its financial risk analysis and prevention has not only reduced the financial risk,but also improved the company’s ability to prevent risks,which can be used as a reference for other companies and demonstrate how to manage Its financial risk.This article analyzes BYD’s financial indicators from 2015 to 2019.It first introduces BYD’s overview and then identifies financial risks,and then evaluates BYD’s financial risks based on factor analysis,based on the years 2014 to 2019 and 2020.The financial data of the first three quarters were analyzed by factor analysis,and a financial risk early warning system belonging to BYD was established.After that,the internal and external analysis of the causes of risk was carried out based on the actual situation of the company.Finally,according to the identified financial risks,the targeted prevention of risks was made,and effective suggestions were put forward.After the research,the following conclusions can be drawn:BYD does have investment risks,financing risks,and operational risks.Through the analysis of financial risks,it is concluded that although BYD’s financial situation was relatively good in 2016,it was doubled by the economic situation and the decline in government subsidies.Impact,companies still have risks in terms of operational capacity and profitability.The external reasons for the financial risks of enterprises include:consumers’ recognition of new energy vehicles is still insufficient,the impact of industry competition on enterprises within the industry,and the decline in government subsidies.The internal reasons for the financial risks of the enterprise include:the large scale of accounts receivable and the unreasonable debt maturity structure. |
