Research On Financial Risk Management Of GH Company

Since the beginning of 2020,China has issued the outline of "Healthy China 2030",which means that the regulations and policies of medical device regulation will continue to be improved,and China’s medical device industry will still be in the "golden period of development" in the future.Medical device industry has always attached importance to technological innovation and research and development,which will lead to high investment cost and long cycle.In addition to the implementation of the reform policy implementation to instrument equipment pricing is more transparent,greatly squeezed the enterprise profit space,these reasons lead to medical instrument companies need a lot of money to ensure the daily operation,when there is not enough money,companies often raise money through debt,plus the financial cost of its own,it will certainly bring the financial risk.GH Company was chosen as the research object in this paper because it was one of the leading enterprises in the industry at the initial stage of listing,but its net profit declined sharply from 2016 to 2019,and even suffered losses.Therefore,it is necessary and realistic to carry out effective financial risk management for GH Company.This paper makes full use of literature research method and case study method to identify and evaluate the financial risk of GH Company,and to control its risk.First,after expounding the research background,purpose and significance,analyze the domestic and foreign research status of financial risk and financial risk management,and introduce the research method of the full text;secondly,combine the company’s financial data from 2016 to 2020 and the performance of the medical device industry Evaluation criteria: Identify financial risks from the four dimensions of financing,investment,working capital,and income distribution;reselect indicators to establish an evaluation system.The index categories are financing risk,investment risk,operational risk,and income distribution risk.Based on this,16 For financial indicators,the entropy weight method is used to determine the weight of each indicator,and combined with the Topsis method to rank the financial risks of all related medical device companies,the financial risk ranking of GH Company and the changes in financial risks from2016 to 2020 are obtained.By comparing with peer companies,the results show that GH company has relatively high financial risks.The main financial risks the company faces from2016 to 2020 are: inefficient use of funds,rising pressure on company debt,slow inventory turnover,etc.Finally,based on the evaluation results,this paper makes an assessment of GH The company put forward suggestions on financial risk control,the specific suggestions include:improving the internal control system;expanding multi-channel financing,optimizing the liability structure and strengthening the solvency;adjusting the investment structure and paying attention to investment analysis;formulating appropriate credit sales standards and collection systems,and strengthening inventory management;Improve the level of income and optimize the dividend distribution policy.