Research On Financial Risk Evaluation And Control Of W Company

Transmission,distribution and control equipment industry is a very important strategic industry in China,which should be supported and developed by the state.In recent years,the long-term development trend of China’s energy economy has widely opened up the market for power related enterprises.However,with the continuous upgrading of power distribution and control equipment,the competition in the industry is becoming more and more fierce.The traditional financial analysis can no longer meet the needs of company management and decision-making.Combined with the characteristics of power transmission and distribution and control equipment industry and W company’s own characteristics,this thesis analyzes the financial risks and their causes accurately from five aspects of financing risk,investment risk,operation risk,growth risk and other risks in combination with the actual situation of W company in 2016-2019 by consulting relevant literature and interviewing financial personnel and auditors.This thesis selects 15 financial indicators and 21 non-financial indicators to build the financial risk evaluation system of W company: first,build the analytic hierarchy process model to determine the weight of each level and each index in the evaluation system.Then,the score of financial indicators is calculated based on the efficiency coefficient method.Secondly,in order to quantify the non-financial risk,this thesis uses the fuzzy comprehensive evaluation method to determine the score of non-financial indicators.Finally,the financial risk comprehensive score of W company is calculated,which shows that the financial risk of W company is in the medium alarm level.This thesis analyzes the main reasons for the formation of W company’s financial risk,and puts forward specific measures to control the company’s financial risk.The research results will help W company to have a more comprehensive understanding and actively take measures to deal with its financial risks and enhance its competitive strength.At the same time,it also provides some reference for other enterprises in the transmission and distribution and control equipment industry.