Financial Risk Diagnosis Of YZ Coal Company

Coal is China’s main energy and important industrial raw materials.The safe and stable supply of coal is related to the overall situation of China’s socialist modernization.However,China’s ecological and environmental constraints are constantly strengthened,the"double carbon" strategy is deeply implemented,and the substitution of non fossil energy is accelerated,which has brought a series of new problems and challenges to coal enterprises.In this context,it is particularly important to strengthen the risk management of coal enterprises.Therefore,this paper uses case analysis,comparative analysis,factor analysis and other research methods to identify and evaluate the financial risk of YZ coal company,in order to provide reference for the diagnosis of financial risk of YZ.The main results and conclusions of the paper are as follow:(1)An overall risk recognition in a four-dimensional views including financing and investing risks of YZ.In terms of financing risks,YZ is bearing a high debt asset ratio,pressure of current liability and financing risks in its inter-national operations.In investing risks,the main risks are in its enormous investments in physical assets.In the operation risks,YZ is facing pressure in its inventory management.And in the income apportionment,the risks lie in the unbalanced share of its income in the pessimistic background of its operating revenue.(2)Applying to methods of factor analysis,the financial risks of YZ are analyzed in both the horizonal and vertical point of views.The results of vertical analysis suggest that the main risks lie in its investments and cash flow,whereas that of horizonal analysis indicate different risks in various years.Set year 2020 as the time border,the operating risks and the income apportionment risks were the main ones before the year.And on the other side,risks of financing,investing and cash flow were conspicuous in the first 3 quarters of 2021.(3)Corresponding measures and enlightenments are provided on basis of the assessment and recognition results of the financial risks of YZ.In the aspect of financing risks,financing channels shall be expanded further,and the debt structure shall be re-arranged.In the aspect of investment and cash flow risks,investment portfolios shall be optimized,and the corporation cost shall be well managed.In operation risks,the production and marketing structure shall also be further optimized for control of coal reservation.Meanwhile,a diversified system of income apportionment shall be applied,and an optimized share’s structure is recommended.Another 2 enlightenments about financial risk management in coal industries are given,apart from the corresponding measures.This paper runs analysis to a certain corporation and shows its pertinency and feasibility.A value of reference is thus given to corporations in coal industry for the risk management,which is expected to benefit the development of coal industry in China,as well as a rational utilization of coal resources to consolidate the position of coal industry in the country.