Research On Financial Risk Management Of W Company

As an emerging and popular industry,the high-quality development of the economy,the film industry has also made great progress and achieved record high box office.At the same time,the country has increased its support and assistance to the industry,and more and more enterprises have joined this development camp,promoting the flourishing of the film industry.However,film companies also have certain risks,with varying degrees of financial risk,such as difficulties in fundraising,long investment periods,and unstable returns.The practical significance of this paper’s research is to provide more reasonable identification,evaluation,and control methods based on the financial risks faced by film companies,in order to improve the management ability of enterprise financial risks.This paper focuses on the domestic film company W Company,which,as an emerging leader in the film industry,holds a leading position in the domestic film industry after its listing.However,it can still be seen in its financial statements that during the period from 2017 to 2021,there were issues such as high operating costs,a decrease in inventory,accounts receivable,and total asset turnover.In 2019 and 2020,there were significant losses in total assets.This paper uses various research methods such as financial statement analysis and literature analysis to study W Company’s operations,debt repayment,profitability,growth,and other aspects.It identifies its financial risks,analyzes the annual report data of W Film Company from 2017 to 2022,summarizes its financial risks,and evaluates W Company’s financial risk level from multiple perspectives using Z-score indicator analysis,Corresponding financial risk management strategies have been proposed for W Company’s financial risks.After analysis,it can be found that the financial risks of Company W include poor management of current assets,insufficient solvency,and lack of internal control management.The paper proposes countermeasures based on the identification and evaluation of financial risks: strengthening current asset management;Improving debt repayment ability;Strengthen internal controls.Through the research of the paper,it can sound an alarm for W Company,arouse its attention to financial risk management,and provide some feasible reference opinions.