Research On Financial Risk Of Automobile Manufacturing Enterprises Under Similar Financial Model

The similar financial model is a working capital management strategy,in which an enterprise generates surplus floating funds on the book by manipulating the time difference between accounts receivable and accounts payable for its further expansion or fund management needs.With the characteristics of low cost,few restrictions and flexibility,financial financing under this mode was first applied by large enterprises in the home appliance retail industry.Because it brought good financial performance and low cost of capital for enterprises in the early stage,it has been gradually tried by enterprises in more industries.However,after the debt crisis of Goma broke out in 2008 due to the use of such financial model,the risk of using such financial model was gradually reflected.Automobile manufacturing industry of our country is one of the four pillar industries of national economy,and has formed a complete kind and supporting industrial system in development for several decades.At present,our auto industry gradually enters the saturated market stage,the competition is relatively fierce.The proposal of a new round of industrial and technological revolution makes automobile enterprises increase the demand for operating capital and management efficiency in order to seek further development.Based on the above background,this paper selects the automobile manufacturing industry,which has obviously begun to use the similar financial model for working capital management in recent years,as the research object,and takes the leading enterprise in the industry,SAIC Motor,as the case study.By analyzing the use of the group-type financial model,the financial characteristics and operation mode under this model,This paper analyzes and discusses the financial performance and hidden financial risks under the financial model of SAIC Group and further reflects the current situation of working capital management in the automobile manufacturing industry and the hidden risks.Through the research,this paper finds that,first,to some extent,the similar financial model of SAIC can indeed make the company have more floating cash on the book for the maintenance and development of daily business activities,and promote the expansion of the company’s income scale.However,when external market risks occur,the part of funds obtained through similar financial model cannot enhance the enterprise’s ability to resist risks.On the contrary,it may further aggravate the debt paying burden of enterprises and increase the financial risk of enterprises.Second,if the guarantee degree of operating profit and net operating cash flow is insufficient,the excessive control and occupation of suppliers’ funds under the similar financial model will make the interconnected industrial capital chain vulnerable to external shocks.In this case,if the payment problem of the core enterprise occurs,it will inevitably involve the whole body.The enterprise will not only face the risk of commercial credit damage,but also directly damage the operating interests of the upstream enterprise.The negative impact will be transmitted to the whole capital chain,damaging the safety and health of the upstream and downstream capital.Finally,based on the research conclusions,this paper puts forward suggestions and prospects for the risk prevention of the application of the financial model in the automobile manufacturing industry,aiming at enriching the case base of the application of the financial model in different industries and providing some reference for other enterprises in the automobile manufacturing industry to apply the financial model.