Research On Financial Risk Evaluation And Control Of HF Food Company

In recent years,with the rapid development of my country’s economy and the accelerated pace of life,my country’s quick-frozen food industry has developed rapidly.At the same time,under the influence of the external environment and the internal environment of the quick-frozen food industry,the financial risks faced by enterprises are becoming more and more complex and diversified,which is very unfavorable for the long-term development of enterprises.HF food company was listed on the Shanghai Stock Exchange in 2017 and issued shares to raise funds for investment in fixed assets.After the listing,the company’s profitability did not increase but gradually declined.The thesis takes HF food company in the quick-frozen food industry as the research object,identifies and evaluates the company’s financial risks,and puts forward countermeasures and suggestions to control the company’s financial risks.The thesis uses literature research method,entropy value method,efficacy coefficient method and other methods to evaluate the financial risk of HF food company.Based on the introduction of the concept of financial risk and related theories,the financial risk of HF food company is analyzed according to the research framework of financial risk identificationassessment-control.Combined with the actual situation of the food processing industry and HF food company,an evaluation system including 21 financial indicators and 8 non-financial indicators is constructed.Entropy method and efficacy coefficient method are used to score financial indicators,and AHP and fuzzy comprehensive evaluation method are used to score non-financial indicators.The research found that:(1)The comprehensive financial risk index of HF food company in 2020 was 0.4236,the financial risk index based on financial index evaluation was 0.3500,and the financial risk index evaluated by non-financial indicators was0.5708,and the corresponding risk levels were giant police and medium police respectively,indicating that the company has extremely serious financial risks.(2)The company’s financial risk composite indexes based on financial indicators from 2016 to the third quarter of 2021 were0.57,0.59,0.40,0.54,0.35 and 0.18,the evaluation results showed that the company’s financial risk increased year by year,and in 2019 it was medium,In 2020 and the third quarter of 2021,the police fell into the giant police level.(3)The company’s high cost of equity financing and excessive reliance on short-term bank loans,internal factors such as the delay in raising funds for fixed asset projects resulting in a significant reduction in capacity utilization,as well as external factors such as intensified competition in the same industry and fluctuations in raw material prices,have caused HF food company to fall into serious police state.Combined with the causes of financial risk,the thesis puts forward risk control suggestions from five aspects,such as financing and investment risk.It is recommended that the company control financial risks by expanding financing channels,increasing the diversity and integrity of product types,and improving the company’s capacity utilization.The research of the thesis will help to strengthen the financial risk control of HF food company,so as to help the management of the company to take targeted measures to reduce the company’s financial risks.The relevant suggestions can also be used for reference by companies in the food processing industry,especially the frozen food industry.