Research On The Financial Risks Of The Diversified Development Of Internet Enterprises

With the rapid development of Internet technology,more and more Internet companies have emerged.In the face of increasingly fierce competition,many Internet companies have begun to implement diversified development business strategies.By consolidating their existing industries,they invest capital to develop new products and services to obtain higher profits and increase the market.Occupation rate and diversification of operating risks.However,there are some unknown factors in the implementation of the diversification strategy,which will bring a series of financial risks to Internet companies.Therefore,analyzing and preventing the financial risks of Internet companies in the process of diversification has become a key issue that the theoretical circles and business managers urgently need to solve.This article selects Meituan as the case analysis object.Firstly,it uses the diversified development theory as the basic knowledge to analyze the motivations of Internet companies diversified development.Secondly,it uses Meituan’s financial data in recent years and the horizontal and vertical comparison of companies in the same industry.Its financing risk,investment risk,operation risk and income distribution risk;meanwhile,it uses Z model analysis method and Tobin’s Q value analysis method to conduct a vertical overall analysis of the financial risks of Meituan’s diversified development;finally,it will prevent Meituan’s diversified financial development Risks,from the perspective of development model and business management,put forward corresponding recommendations applicable to Internet companies.Through research and analysis,it is found that in the process of diversified operation and development of Internet companies,financial risks are always generated.The main causes are high financing risks,high debt repayment pressure,diversified expansion of enterprises,and slow development of new operations.The profitability of the enterprise is limited,the cash flow pressure is high,the performance loss is large,and the income distribution is uneven.In response to the financial risks of Internet companies,this article believes that Internet companies should allocate financing structures reasonably to reduce financing risks;appropriately diversify their operations and choose to develop new businesses reasonably;at the same time,they must strengthen cash flow management to improve the efficiency of capital flow;and companies It should also stabilize the main business to improve profitability;strengthen financial risk management,establish and improve a robust early warning mechanism;and improve innovation capabilities by building a talent team.Through the research of this article,the theory of diversification in the Internet industry has been further improved,which can be used as a reference for similar Internet companies,and can also provide guidance and practical significance for Meituan to avoid financial risks.