Analysis Of Financial Risk Of Jianghuai Automobile From The Perspective Of Cash Flow

Since 2012,the government has vigorously supported the development of China’s new energy automobile industry by providing a large number of subsidies and welfare,and new energy automobile enterprises have developed rapidly during this period.Not only have established automobile enterprises begun to invest heavily in research and development costs and change their development strategies,but also small and medium-sized automobile enterprises have risen rapidly.However,with the decline of policy and market heat in recent years,new energy vehicle enterprises have been affected to varying degrees.With the overall sales growth of China’s automobile industry declining,among which the sales of new energy vehicles decreased by 4% year-on-year in 2019,and the rise of research and development costs and raw material prices,many enterprises have suffered from insufficient cash flow.From 2017 to 2018,about seven of the top ten enterprises in the automobile industry experienced negative net cash flow from operating activities and low cash flow adequacy ratio,and the enterprises could only maintain their operations through a large amount of debt.Due to the current situation of long investment return cycle,high debt repayment pressure,difficulty in financing and poor operating efficiency of new energy automobile enterprises,enterprises may suffer from cash flow rupture at any time and fall into financial crisis.How to identify and prevent the financial risks of enterprises based on the perspective of cash flow in the context of the immature market of new energy vehicles,and take effective measures to improve the cash flow of enterprises,to ensure that enterprises have sufficient cash flow to maintain operations,and to ensure financial soundness has become a problem worth thinking about.This paper first introduces the research background and significance,sorts out the current situation of financial risk research and financial risk control of cash flow at home and abroad,and expounds the research methods used in this paper.Secondly this article selects the anhui province’s largest enterprises jianghuai automobile as an example,the new energy automotive industry overall data analysis,found that in recent years,new energy automobile enterprises must have the cash flow of the financial problems,and then analyze the data of jianghuai auto,generally found jianghuai auto business situation deteriorating in recent years,the cash flow situation is very bad.On the basis of the selected 15 from the perspective of cash flow risk assessment model including financial indicators and non-financial indicators,containing solvent quality and operating earnings quality,working capital structure and financial flexibility,cash,stock returns,subsidy policy,and technology research and development aspects of analyzing index of jianghuai auto change trend in 2015-2019,at the same time to build the financial risk assessment model based on cash flow perspective,identify jianghuai auto existing financial risk,and efficacy coefficient method for the evaluation,found that the risk of jianghuai automobile gradually larger cash flow financial risk degree is high,the enterprise’s solvency and profitability is weak,At present,the executives and employees of JAC lack risk awareness,the financial activities management process is not perfect,the industry competition is fierce,and the enterprise is highly dependent on government subsidies.Finally,combining with the actual situation of Jianghuai Automobile,it is proposed that we should improve the awareness of enterprise cash flow management and establish a management department.Strengthen the enterprise cash flow financial risk control system dynamic monitoring;Improve the collection management,strengthen the financing process,control the operational risk;Targeting measures such as enhancing research and development capacity,strengthening industrial cooperation,and improving operation should be taken to perfect the financial risk control system of JAC Automobile and promote its sustainable development.