Research On Financial Risk Manangement Of T Home Appliance Company

The most important risk faced by businesses is financial risk,and business collapse due to financial risk happens from time to time.Some companies with good business performance collapsed overnight,such as Enron,Le TV and other listed companies.Although the reasons for their bankruptcy are complicated,an in-depth analysis of them reveals that poor control of financial risks is one of the main reasons for their instant demise.In recent years,T has been affected by the domestic and international economic environment and the epidemic,and its level of development has been somewhat restricted,its influence and competitiveness in the industry has weakened,and its financial risk has increased.Due to the law of product life cycle,China’s home appliance industry is generally in the process of innovation and transformation,and at the same time,the financial risks faced by T Home Appliances are becoming more and more complex due to the complex external environment such as macroeconomic recession.In order to study the financial risks in the operation of T Home Appliances,a case study approach is used to identify,evaluate and control the financial risks of T Home Appliances.Combining T’s industry background and development status,PEST analysis and SWOT analysis were conducted,and the following problems were found in T Home Appliances’ finances: low brand influence,resulting in low product prices;high cost of producing energy-saving and environment-friendly home appliances;low investment in R&D and low level of intelligent R&D;as well as the use of price wars in the same industry,which limits profitability levels.Through the analysis of T Home Appliances’ financial statements in the past five years,it was found that the company has certain hidden financial risks in financing,investment and operation.Therefore,an in-depth analysis was conducted and compared with the average value of listed companies in the home appliance industry.The results showed that the financial risks faced by T Home Appliances are large,as follows: poor internal liquidity and worrying short-term solvency;high asset-liability ratio and poor long-term solvency;low input-output ratio,poor main business and overall profitability level;accounts receivable and inventory turnover days compared with There is still a gap between accounts receivable and inventory turnover days compared with the industry leaders.Then,the Z-score model is constructed to assess the financial risk of T Home Appliances,and the financial indicators are compared with those of Midea Group and Gree Electric,which are in the same industry,and the results are tested with the F-score model.Finally,targeted and feasible risk-avoidance measures are proposed in relation to the financial risks faced by T Home Appliances.These measures can provide reference for other enterprises in the home appliance industry to avoid financial risks.