Research On Financial Risk Control Of PF Energy Company

Coal is one of the most important energy sources in China. In recent years, a large number of coal output has met the needs of China’s economic development. However, the problem of overcapacity has resulted in huge financial risk for coal enterprises. Both internal and external factors could impact the development of coal enterprises, and these factors are uncertain, which makes the coal enterprise financial risk becomes complex. On the basic of reading the relevant research achievement both in abroad and in home, analyze and summarize a lot of literatures, the thesis further studies the control of financial risk based on the actual situation of the PF energy company. Meanwhile, it will provide PF energy company with appropriate recommendations for financial risk control..According to the particular case of industry characteristic and PF energy company oneself,financial risks of PF energy company are included in this thesis as following, financing risk,investment risk, operational risk and cash flow risk.. The analysis from these four aspects shows that the financial situation of the company is poor. In order to confirm the financial risk of the company and the quantization of the company, the thesis introduces the analytic hierarchy process. Based on the four selected financial indicators, experts determine the weight score for the mutual influence on these financial indicators. Through the analysis of the financial risk, the level of PF energy company can be evaluated, and the calculation results show that the degree of financial risk in enterprises is serious warning level, the result correspond to the analysis of financial risk. The main reason of the financial risk is that business and investment activities of enterprises can not generate cash flow. In addition, poor coal sales and the backlog of coal are the other factors which result in financial risk.At the end of this thesis, proposes measures of PF energy company to strengthen financial risk control from four aspects of financing, investment, operation and cash flow. This thesis hope to provide some reference to the financial risk control of PF energy company.