Research On Financial Risk Identification And Control Of M Photovoltaic Company

Photovoltaic,as an important renewable energy power generation technology,has achieved rapid development in recent years,and the mass production technology of photovoltaic cells,modules and other key components has reached the world’s leading level.In order to achieve the goal of reaching the peak of carbon and carbon neutrality,China’s photovoltaic power generation needs to reach 9-1 billion kilowatts by 2030;During the "14th Five-Year Plan" period,China’s photovoltaic industry will continue to improve the level of production technology under the guidance of the country’s overall development goals.However,the photovoltaic industry is facing many challenges while ushering in unprecedented development opportunities.First of all,the photovoltaic industry as an emerging industry,under the guidance of government policies led to a large amount of capital inflows,such as TCL and a large number of well-known domestic enterprises in various industries to join the market overheating.The intensification of industry competition causes enterprises to expand their scale in order to seize the market.Coupled with the long payback cycle of power plant business,a large number of loans lead to the excessively high asset-liability ratio in the industry,and excess capacity further decreases profits and low return on investment.In the face of domestic subsidy policy regulation,financing difficulties,rising raw materials,overcapacity and other problems,if the enterprise can not identify and control the existing financial risks in a timely manner,it will affect the capital chain of the enterprise to a large extent,resulting in the risk of delisting or even bankruptcy.On the basis of combing the research status of financial risk management at home and abroad and learning related concepts and theories,this paper analyzes the basic information,financial status and risk management status of M company.Based on the study of relevant literature,as well as the operation situation of M Company and its business distribution in the industrial chain,the complete financial data of M Company in the past five years(2017-2021)are selected from four aspects: financing risk,investment risk,operating risk and cash flow risk.Risk identification was carried out using 15 related financial indicators that reflect the revenue growth ability of photovoltaic module business and the asset recovery ability,analyzing the internal and external factors that lead to the company’s financial risks,and building a financial risk evaluation system with analytic hierarchy process.It is found that the five abilities affecting the occurrence of M company’s financial risks are debt paying ability,profitability,operating ability,growth ability and cash flow ability in turn.According to the risk level table,it can be seen that M company faces a higher level of financial risk,which should be paid attention to,and the risk control measures for M company are proposed.The purpose of this paper is to help M company control its financial risk early,and also to provide a reference for other enterprises in the industry to prevent and control financial risk.