D Real Estate Company And Finance Risk Analysis

With China’s sustained economic development and social adjustment of consumption structure, real estate industry developing rapidly, the public has a constant growing demand for commercial housing.Since 2003, our country economy has increased substantially, the real estate industry has a rapid development with the development of macro economy, real estate enterprises also have sprung up.So, the real estate industry has rapidly become one of the pillar industries of the national economy with its strong correlation to other industries and its leading effects, which plays a key role in modern social and economic life. The real estate as atypical capital-intensive industry, with a large investment, high-risk, long cycle, long supply chain and striking regional differences, is inevitably faced with a certain degree of financial risk.Based on theoretical analyses, firstly, this paper take the real-estate developer D as an example to analyze its financial data and typical financial metrics and identify its current financial risks. It described the definition, the source, classification and cause of formation, for financial risk of real estate industry. Secondly, according to the characteristics of the real estate industry, found out which cause the financial risks of this company. By reference to the real estate company’s financial risk analysis index selection standard, screened 15 financial risk indicators. Combining with the company’s expert opinion, put different weight on the 15 financial risk indicators of this company. By using the analytic hierarchy process, through the matrix of mathematical calculation, obtained weight ratio of 15 financial indicators for D company. Using the wall marking way, analyzed the financial risks of this company quantitatively, and assessed financial risk degree. Several preventive measures are given at last. It is hoped that this study can provide references for financial risks control of real-estate enterprises.