Research On Financial Risk Control Of Lushang Real Estate

With the continuous renewal of science and technology and the rapid development of market economy promote the rapid growth of enterprises.The real estate industry has made remarkable contribution to China’s economic growth.With the continuous introduction of the national macro-control policies,real estate enterprises have more or less problems.Coupled with the particularity of the real estate industry,it is important to study the financial risk control of this industry.This paper selects Lushang real estate,a real estate company with significant characteristics of high leverage,as the case study object.Lushang real estate is a company mainly engaged in real estate development and sales,which achieved rapid growth during the boom era of real estate.In this paper,from the financial risk identification,financial risk evaluation and financial risk control three aspects of the relevant literature at home and abroad are reviewed,introduced the theoretical basis of financial risk and financial risk control.Through the financial risk identification of Lushang real estate,it is found that the financial situation of Lushang real estate from2016 to 2020 is worrying,and the Z3 value model and F score model are combined to evaluate the financial risk,and the financial risk is quantified to judge the severity of the risk,which proves that the overall financial risk of Lushang real estate in recent five years is relatively high.Then,it analyzes the causes of financial risks from financing,investment and operation.Financing risk is mainly caused by unreasonable capital structure and unitary financing method.Investment risk is caused by the lack of overall planning of investment projects and the decline of profits in the real estate industry;The operational risk lies in poor sales performance,slow inventory turnover and insufficient cost control.In accordance with the financial risk control measures are put forward to the company,including broaden the financing channels,the reasonable control debt interest rates,optimizing the capital structure,pay close attention to policy guidance,scientific planning and investment projects,actively implement the strategy of industrial transformation,speed up speed up inventory turnover,accounts receivable cash,strengthen the management and control of cash flow.And put forward to strengthen Lushang real estate related personnel risk control awareness and management,strengthen shandong business development departments of financial information exchange,financial risk control measures real-time update can promote the smooth implementation of financial risk control methods.Finally,the conclusion is drawn that lushang development of high asset-liability ratio,high leverage characteristics,insufficient investment project planning,low inventory turnover and insufficient cost control,unreasonable capital structure and many other factors cause the company’s financial risk,summarized and proposed to control the financial risk of the case company measures.It is hoped that the ideas and suggestions put forward in this paper can provide reference for improving the financial risk management level of Lushang real estate and similar enterprises.