Research On Financial Risk Evaluation And Prevention And Control Of W Company

Our country has entered a new economic normal,and with the intensification of market competition,the reasons for financial risks are becoming more and more complicated.Financial risk affects the future development of an enterprise and will adversely affect the enterprise.Therefore,managers must pay attention to the adverse impact of financial risks on enterprises,identify explicit and invisible financial risks promptly,and respond quickly to control them.Among them,the real estate industry,as the most representative industry,has played an active role in promoting domestic and foreign investment,stabilizing domestic demand,stimulating residents’ consumption,developing the real economy,and facing various challenges and threats.Therefore,how to effectively evaluate financial risks and control the losses caused by financial risks within a reasonable range has become a difficult problem that cannot be ignored in the realization of their development,and the difficulties faced by real estate companies are particularly prominent.Based on the above background,compared with other large listed real estate companies,company W has slightly insufficient financial risk prevention and control capabilities and needs to adjust its business strategy in a timely manner to respond to changes in the market and policies.Thus,company W is selected for the study.By identifying and evaluating W company’s financial risk management,this paper proposed the financial risk management and control method that accords with W Company’s current situation.Therefore,this paper takes W company as the research object.By identifying and evaluating W company’s financial risk management,this paper proposed the financial risk management and control method that accords with W company’s current situation.Based on the information in the profit statement,cash flow statement and balance sheet for the year 2017-2020,determined through the financial statement analysis methodology,establish an assess model based on the Analytic Hierarchy Process(AHP),the factors that affect the financial risk of W company Perform relevant data analysis.This paper believes that the financial risks of W company are mainly due to the following reasons: in terms of financing,the company relies too much on the debt business model and the capital structure is unbalanced;in terms of investment,the company’s diversified investment exceeds its own ability level;in terms of operation,the company has too much inventory and poor liquidity This leads to a tight capital chain;in terms of cash flow,cash inflows are not enough to cover cash outflows.Finally,W company has operational risk and investment risk.By analyze and evaluating the risks of W company,this article hopes to provide right data for the recognition and evaluation of financial risks of real estate enterprises,and to prevent and control risks,so that guarantee the healthy development.