The Research On Times New Material Technology Corporation’s Financial Risks Management

There is no doubt that financial risks are existed objectively in the process of enterprise operation.To achieve the aim of firms’sustainable growth, that give the financial crisis of the firm direct management seems to be very essential and unavoidable.However, due to the discrepancy among different industries and businesses, a given enterprise should have its special financial crises,which maybe different from other firms’.Because of this and based on the firm named Times New Material Technology, the article primarily analyse the financial status of the firm, existing problems and the causes of financial crises.Furtherly, this article give some concrete suggests about how to avoid the financial crises as soon as possible.Based on the analysis of the company’s financial management conditions, it’s not difficult find that the financial risks of the firm named Times New Material Technology mainly exist in four aspects, that is, the company investment risk, credit risk, financing risk and business credit risk. Due to lack of necessary consciousness of the developing orientation of wind and electric industry, the firm of Times New Material Technology exists a problem of investment inefficiency initially, which brings a investment crisis to the firm unexpectedly. And because of firm’s matching financing policies with corporate investment, now Times New Material Tech. Co., Ltd. is facing severely repayment pressure of bank debts and financing risk; In the aspect of operating capital management, under the impact of product market competition, the credit spread of accounts receivables is a little long compared with other corporate, which elongates the terms of accounts receivable collocation. Based on the analysis results, the article puts forwad to some specific measurements. Firstly, to decrease the investment crises, strengthing the firm’s investment management system is very necessary. Secondly, to reduce investment risk, adjusting the company’s existing investment structure is also very urgent. Thirdly, to the business named Times New Material Technology, bulding up a rational debt structure and capital structure is essential. What’s more, to decrease the risk of accounts receivable collection, the firm should strengthen the management of accounts receivables, and so on.