Research On Financial Risk Evaluation And Control Of HFSS

Since the outbreak of the epidemic at the end of 2019,most industries at home and abroad have been strongly impacted,especially the textile and garment industry,and the upstream and downstream enterprises in the textile and garment industry have also been affected to varying degrees.Offline sales stores of major clothing retail brands have been closed to a large extent,and enterprises have frequently recovered funds by selling assets.The financial risks of the textile and apparel industry have attracted wide attention,but the increasingly prominent financial risks of textile manufacturing enterprises,as upstream enterprises of retail brands,have not received due attention and research.With the extensive application of the Internet,textile manufacturing enterprises have entered the key node of industrial transformation.The sharp reduction of order volume is a fatal blow to the textile manufacturing industry.Textile manufacturing,as the traditional pillar industry of our country,should increase the intensity of its financial risk and control research.Therefore,this paper chooses HFSS as the research object,identifies and evaluates its financial risks and puts forward control suggestions.First of all,on the basis of combing the literature related to financial risk,this paper expounds the concepts of financial risk,financial risk identification,financial risk evaluation and financial risk control,introduces the entropy method and efficiency coefficient method and the reasons why they are selected as evaluation methods.Secondly,based on the actual situation of HFSS and its financial status in the past five years,the possible financial risks are preliminarily identified from four risk categories of financing,investment,operation and cash flow.By using entropy method and efficacy coefficient method to calculate the evaluation results of financial risk,this paper analyzes and excavates the problems existing in the financial risk of HFSS,and finally puts forward corresponding control suggestions for the financial risk problems.The research results show that the overall financial risk level of HFSS is relatively high,and there is no obvious improvement trend in the short term.In view of the different problems reflected in the four types of financial risks,this paper proposes to establish a financing arrangement group and adjust the financing plan,slow down the speed of overseas investment,explore a new sales model,strengthen cost control and product innovation,establish a cash flow warning system and other suggestions.HFSS is a leading enterprise in textile manufacturing.Its product technology and management ability are ahead of other enterprises in the same industry.The financial risks it faces represent its industry to some extent.