Research On The Financial Risk Of Tangrenshen Group Based On Cash Flow

The agricultural and sideline food processing industry is one of the important pillar industries in my country and one of the important components of modern agriculture.At present,my country’s agricultural and sideline food processing enterprises need to face not only domestic competitors,but also challenges from foreign competitors.,the industry competition is becoming increasingly fierce.Domestic agricultural and sideline food processing enterprises have the characteristics of large investment capital,long product operation cycle and weak resistance to risks.This requires domestic agricultural and sideline food processing enterprises to ensure sufficient internal cash flow reserves and a sound financial system to enhance their risk resistance.Ability to achieve a healthy and stable development strategy of the enterprise.The traditional financial management theory regards the idea of profit maximization as the ultimate goal of enterprise operation.Enterprises mostly use profit indicators when evaluating financial performance.According to accounting standards,enterprises use the accrual system when calculating profits,and enterprises can adjust them through various means.Earnings management,even manipulating profits to achieve the effect of inflated profits,sends a signal of stable production and operation to the outside world.Therefore,a company with considerable profits does not mean that it has stable cash flow and solvency.The cash flow of the enterprise is based on the actual income and expenditure,which can more truly and objectively reflect the overall financial situation of the enterprise,and provide decision-making basis for the enterprise management,so as to arrange the daily production and operation activities of the enterprise more scientifically and reasonably,and promote the high quality and health of the enterprise develop.This paper firstly analyzes the basic financial situation of Tangrenshen Group through the basic financial index data;Secondly,compare the financial indicators of Tangrenshen Group from 2015 to2020 vertically,and compare Tangrenshen Group with companies in the same industry horizontally,identify the financial risks of Tangrenshen Group from the perspective of cash flow based on the comparison results;Thirdly,from the perspective of cash flow,use factor analysis to evaluate the financial risks of Tangrenshen Group,and analyze the causes of risks based on the evaluation results and comparison results;Finally,put forward corresponding management and control suggestions for the causes of risks,hoping to help the company effectively reduce financial risks,improve the ability to resist risks,and promote the sustainable development of the company.At the same time,it provides reference opinions for other companies in the agricultural and sideline food processing industry to better prevent and control cash flow financial risks.