Financiai Risk Analysis And Prevention Research Of ZJ Group Companies

With the development of enterprises in China,the financial risk of enterprises is hindering their rapid development.When companies need to deal with financial risks that have been formed and are constantly changing,they must bear significant costs.Being able to detect risks in advance,correctly analyze risks,enable enterprises to react in a timely manner,and take countermeasures is the most important task of enterprise financial managers.Therefore,this paper chooses to take ZJ Group Corporation,a leading enterprise in the non-ferrous metals industry,as an example for financial risk analysis,hoping to bring reference opinions to it,also for other group companies to provide the reference in the industry.This paper first explains the related concepts of financial risk.It also combs the research status at home and abroad from four aspects.Then it introduces the basic situation and development of ZJ Group Company,and after describing its financial status from the aspects of assets,liabilities and profitability,the financial risks were identified.From the solvency,profitability,operating capacity,and growth capacity of four aspects of the analysis,and obtained:as a listed enterprise,ZJ Group Company maintains a certain repayment ability,but the solvency shows a downward trend;the current profit indicator is strong,but the company’s profitable projects are affected by the external environment,and the future profitability is uncertain.The net cash flow generated by investment activities in the past three years has been negative,so the liquidity of the capital chain is unstable,and there is a possibility of breaking at any time in the future;because the company continues to expand its market share,it belongs to the rapid growth stage,but the expansion speed is too fast,resulting in a relatively large proportion of corporate liabilities,and the future company’s growth space is limited.Then the construction of the financial risk evaluation system of ZJ Group Company,the use of analytic hierarchy method and the power coefficient method to calculate the relevant indicators of the company in 2018-2020,the financial risk evaluation model was established and the corresponding comprehensive score was obtained,the results showed that the financial risk of ZJ Group Company was getting lower and lower in the past three years,but the individual indicators were abnormal,judging that it was a slight financial risk,and in the future,we should pay special attention to the changes in abnormal indicators and take targeted countermeasures in the state of maintaining low risk.Finally,the corresponding countermeasures are proposed for the identified risks,in terms of financing risks,we must formulate a financing plan.In advance,optimize the asset structure,broaden the financing channels,reasonable planning the enterprise funds,and improve the management process in terms of investment risks.While improving the internal control of enterprises,we will improve employees’ awareness of risk prevention and constantly improve the risk warning mechanism improve the recovery rate of funds and reduce the economic losses of enterprises.