Research On Cash Flow Financial Risk Management Of Real Estate Development Enterprises

With the rapid development of China’s economy,consumer housing demand will inevitably increase.The development of the real estate industry has played an important role in promoting China’s economic development.However,in recent years,the macro and micro environment of real estate has been changing.The coexistence of high income and high risk in the real estate industry has increased the financial risk pressure of real estate enterprises.How to effectively analyze and identify various financial risks and manage and control them reasonably has become an urgent problem for all real estate enterprises.H Real Estate Company is a relatively large listed real estate company with typical characteristics of real estate enterprises.It is of great guiding significance for the whole industry to study the financial risk of H Real Estate Company from the perspective of cash flow.This paper uses the case analysis method to analyze the cash flow financial risk of H Real Estate Company.First,analyze and identify the current situation and cash flow financial risks of H Real Estate Company.Secondly,by selecting 22 types of financial indicators of H Real Estate Company from 2017 to 2021,and using mathematical statistics theory to analyze and study financial risks,five types of financial ratios that can better warn financial risks are screened out.By using these five types of financial ratios as discriminant variable relations,the Z-core model is constructed,and the Z-core model is constructed to evaluate financial risks and obtain evaluation results.Thirdly,it analyzes the external and internal causes of the cash flow financial risk of H Real Estate Company,and puts forward suggestions on the control of cash flow financial risk from financing activities,investment activities and operating activities.Finally,through the model analysis,we draw the conclusion that H real estate company’s debt structure is unreasonable and the company’s free cash flow is insufficient,which is vulnerable to the impact of the market environment and relevant policies;At the same time,the company’s poor turnover and profitability of accounts receivable will also cause financial risk of cash flow.According to the above reasons,H Real Estate Company must improve its debt structure in the future development process,pay attention to the market environment and policy changes,make reasonable investment plans,and strengthen the management of inventory and accounts receivable to improve the efficiency of capital use.The research results of this paper are not only helpful to the application of H Real Estate Company in cash flow financial risk management,but also can provide corresponding prevention and response measures for other real estate enterprises,so as to promote the stable and healthy development of real estate enterprises.