Research On Financial Risk Evaluation And Prevention Of Real Estate Company

Real estate as an important project of deepening reform in our country, is always the key concern of the people’s livelihood. It improved the development of the integration of urban and rural, and helped our country solve many problems.The real estate market in China began to develop comprehensively development after the housing system reform in 1998. From 2004 to 2013, this period was the “golden decade " of real estate enterprises in China. However, the market has come into “silver decade " and gradually slow down the growth trend. Therefore, the real estate enterprises have faced many problems such as the difficulty in financing, the unclear of future development, etc.In such a tough market environment, the managers in real estate enterprises need to accomplish know fairly well to the financial risk. In addition, they should identify the company has happened or what will happen in the process of rapid development of financial risk, in order to make improvement and prevention work. Therefore, how to identify, analyze and evaluate financial risk in real estate enterprises becomes particularly important. Based on the realistic background, this paper selects the financial risk problem in TB Company to research.Firstly, the reasearch introduced the research background, purpose and significance. It summaries the research situation of the financial risk in home and abroad real estate companies,and explains the definition, characteristic and classification of the financial risk. Secondly, the article choosed TB Company as the research object, and introduced the basic information of the company. The introduction mainly included the company’s business scope, operating conditions and development idea. It used the capital circulation movement angle of view in financial risk classification, selecting the corresponding financial indicators, using ratio analysis, trend analysis to identify the financing, investment, operation, income distribution and guarantee of TB Company. This article analysed the causes of risk in order to find the specific cause of the financial risk.Then, the article based the financial index which can reflect the five abilities in TB,and built the financial risk evaluation model by using factor analysis. This paper also used the 52 groups financial data published between 2002 and 2014 as the empirical foundation, and makes evaluation to the financial risk in factor analysis. Finally, according to the above for TB company financial risk identification, genetic analysis and evaluation system, the research will providedthe rationality of preventive advice. The article hope to provide reference for similar real estate listed company.