Research On Financial Risk Management Of M Real Estate Company

In recent years,with the increase of the state’s macro-control policies for the real estate industry and the intensification of competition in the real estate industry,the concentration of the industry has continued to rise,and the industry’s profits are changing from "huge profits" to "small profits".The real estate industry has laid the most fundamental material foundation for social development,created the necessary conditions for the survival of workers,made great contributions to China’s economic growth,and is a pillar industry of China’s economy.However,real estate enterprises belong to capital-intensive industries,early production to spend a lot of money,with a high proportion of debt financing,long return on investment,high dependence on funds and other characteristics,which makes real estate enterprises face greater financial risks,so real estate enterprises should pay attention to the management of financial risks,to prevent the emergence of financial risks from endangering the development of enterprises.This paper selects M Real Estate Company as the research object,firstly,through reviewing a large number of domestic and foreign literature,combined with the financial data of M Real Estate Company from 2017 to 2021,the financial risks are identified from four aspects: debt repayment,profitability,operation and development ability.Secondly,based on the basic situation of M real estate company,combined with the characteristics of the real estate industry,the financial indicators were selected to evaluate the financial risk of the company,the analytic hierarchy method was used to calculate the weight of the financial indicators of M real estate company,and the improved efficacy coefficient method was used to determine the financial risk evaluation index,which clarified the financial risk degree of the company.The financial risks of M Real Estate are caused by unreasonable debt structure,lack of planning and management of investment projects,inefficient asset operation and management,and lack of cost and expense management.Finally,targeted financial risk prevention measures were formulated for the financial risks of M Real Estate.It is hoped that this study can meet the needs of M Real Estate Company’s financial risk management,improve the risk avoidance ability of M Real Estate Company,and also hope to provide certain reference significance for the real estate industry.