Research On Financial Risk Evaluation Of Cement Listed Companies

Money determines the sustained and healthy development of the enterprises.Financial risk exists in the whole management activities, it’s objective and uncertainty.Because of the poor economic environment and the increasingly fierce competition of the market, the financial risk of the enterprises becomes more and more complex.So in the face of this situation, it is necessary to evaluate the financial risk of the enterprise, in order to take timely measures to control the financial risk of the enterprise, to prevent the further expanding, guarantee the long-term healthy and stable development of the enterprise.The cement industry has always been regarded as the thermometer of the national economy, the healthy development of the cement plays a very important role in the national economy.Unfortunately, the financial situation of the cement industry is not very good, such as reduced profits. Based on the characteristics of cement enterprises and it’s financial risk situation, building the appraisal system of financial risk gives the corresponding financial risk prevention control measures and Suggestions, It has certain practical significance to cement enterprises.This paper combines previous research results with the characteristics of the cement industry to build the financial risk evaluation system of the cement industry which contains five aspects, such as operating ability, debt paying ability, cash flow ability, profit ability, growth ability. This paper uses factor analysis method to identify common factor, and finally get the final composite scores of cement listed companies.These scores can evaluate financial risk status in an objective. In addition, this article also uses the clustering analysis method to classify the repayment factor, cash flow factor, operation factor, profit factor, growth factors, the five principal components into three types. Taking the final composite scores into consideration, we can find operation ability factor, solvency factor is the two important factors that affects thecement enterprise financial situation. Finally according to the characteristics of the cement industry listed companies,as well as financial risk factors, we can get corresponding measures to prevent financial risks, including set up risk prevention consciousness, set up financial risk control system; improve inventory, accounts receivable turnover, enhance the operating capacity; set up reasonable of capital structure, broaden the financing channels;strengthen cash management, improve cash flow capacity; in order to strengthen the management of foreign investment, optimize the structure of industry of enterprise.