Research On Financial Risk Analysis And Prevention Of Z Construction Company

With the deepening of reform and opening up,China’s urbanization process is gradually accelerated,and China’s construction industry is also driven to develop vigorously with the acceleration of urbanization process.The financial risk is generally large,which is a common problem faced by China’s construction enterprises at present.It is usually manifested in the project construction,project decision-making,national policies and project funds and other aspects that are faced with large financial risks,leading to construction enterprises in a certain range The profit earned in a certain period deviates from the business expectation,causing the enterprise to suffer economic losses or face more serious financial problems.Therefore,if the enterprise wants to ensure a good development situation,it must do a good job of preventing and resolving financial risks.This article selects Z Construction Company as the research object.Firstly,it discusses the research background,purpose,and significance of the topic,summarizes the current research status at home and abroad,and provides the research ideas,content,methods,and innovation points of this article.Secondly,the relevant concepts and theoretical foundations were clarified,including the theoretical methods of financial risk management,the basic characteristics of financial risk management in the construction industry,and China’s relevant policies on financial management in the construction industry.Once again,through investigation and analysis,understand the current development situation of Z Construction Company,analyze its current financial risk situation,and analyze the specific reasons for its financial risks from aspects such as asset composition,profitability,cash flow,and debt repayment ability.Next,a comparison was made between the Z-score model and the F-score model,and the F-score model was used to calculate the F-value of Z Construction Company.Based on the calculation results,the financial risks of Z Construction Company were evaluated,pointing out the financial risks faced by the company,such as poor asset liquidity,significant destocking pressure,large debt scale,and cash flow problems caused by the current development status of the construction industry.Finally,considering that Z Construction Company is currently in a high financial risk state,this article proposes strategic suggestions for Z Company to control financial risks from aspects such as optimizing asset composition,expanding profitability from multiple aspects by suppressing inventory,improving debt repayment ability,and strengthening cash flow management,in order to achieve the maximum effect of preventing and resolving financial risks.The innovation of this article is to fully consider the characteristics of the domestic construction industry,select the F-score model to calculate and analyze the financial situation of Z Construction Company,identify the current financial problems of the company,and propose control measures and prevention suggestions based on the actual operating situation of the company,in order to achieve the maximum effect of early prevention of financial risks.This article further solves the problems of insufficient applicability of financial risk management system research results by domestic and foreign scholars to the construction industry,and failure to integrate them well with the specific reality of China’s construction industry,making the research results more practical and valuable.