Research On Financial Risk Management Of Y Company Based On Entropy Right TOPSIS Method

With the increasingly exhausted reserves of traditional energy sources such as coal and oil,the development of new energy industry has become the only way for the sustainable development of the global economy.As an important part of the new energy industry,new energy vehicles have attracted much attention.The Chinese government has formulated more subsidies and preferential policies to support the sustainable development of the new energy industry,such as new energy vehicles and exemption from car purchase tax,so as to promote the development of new energy vehicles.However,due to the natural technical defects of new energy vehicles have not been widely welcomed,and in recent years,in order to maintain the healthy development of the new energy vehicle industry,the government has reduced the financial subsidies to the new energy vehicle industry,which brings challenges to the new energy vehicle industry.In the face of increasingly fierce market competition and severe external environment,it is very important as a listed company in the new energy vehicle industry to do a good job of necessary financial risk prevention,establish and improve a sound financial risk prevention mechanism to deal with financial risks.With Y,the research background,purpose and significance of the paper.Secondly,the paper expounds the concept and type of financial risk,introduces the content of financial risk management,and emphatically introduces the principle and steps of the entropy right TOPSIS method and the balance theory.Again,identify Y company financial risk,the company in2015-2020 related financial indicators and industry average and excellent enterprises,and deep analysis of the financial report of Y company,identify Y company debt is too large,long short-term loan ratio,high financial costs,credit sales is large,old model inventory backlog,unreasonable investment project evaluation,cash flow instability,etc.Then,according to the risk identification of the Y company,14 financial indicators were selected from the four dimensions of financing,investment,operation and cash flow,objectively authorized by the entropy right method,and the TOPSIS method ranked the financial risks of the company in recent years.The evaluation results show that company Y company is faced with debt repayment risk,followed by operating risk,cash flow risk,and finally investment risk.Finally combined with risk identification and risk assessment situation put forward feasibility Suggestions,such as optimizing capital structure,reasonable arrangement of short-term debt ratio,perfect accounts receivable management level,develop reasonable inventory management mechanism and timely digest old models,strengthen internal investment benefit analysis,perfect foreign investment project management approval mechanism,formulate reliable funds use planning,improve the financial early warning index mechanism.In order to provide reasonable suggestions for Y company’s financial risk control,and to provide reference for the management of financial risks of other new energy vehicle industry companies.