Research On Financial Risk Control Of JH Automobile Company

The demand for cars is increasing with the prosperous development of China's economy and the steady increase of national income,which has promoted the rise of the automotive industry.On the one hand,from the view of domestic and international economic situation and the development of the industry situation,the automotive industry is influenced by the economy,policy,culture and other external factors,and these effects bring enterprises not only the opportunity but unprecedented risks to a certain extent.On the other hand,from the internal management of the automotive industry,corporate management,technical capacity and other factors have played a certain role in the development of the company.The automotive industry and all car companies are faced with complex external and internal risks,and the long-term development of an enterprise depends on risk control.Nowadays,the financial risk is one of the most common risks encountered in the business process for an enterprise.Therefore,in recent years,scholars have focused on how to identify the financial risks faced by enterprises in the course of business and control it.Based on the theory of financial risk control and the combination of theoretical research and case study,this paper firstly sorts the research literature of the domestic and foreign experts in the financial risk control,and then select the most representative local car company of Anhui,JH company,as the study case.Through the analysis of the data on the Company's financial statements and its specific business processes,the Company's problems in the financial risk control are identified and the corresponding suggestions are given to improve the JH company's financial risk control ability.Following conclusions are obtained:Firstly,JH company is faced with many financial risks,such as poor short-term solvency,high proportion of debt,decline in asset turnover and the main business profitability and so on.Secondly,JH company's financial risk control is too passive,the way to raise funds is single and the Accounts Receivable Management is imperfect and so on.Thirdly,in order to improve JH company's financial risk control capability,improving the financial risk control environment,enriching risk control methods and improving the company's management capabilities are necessary.This article has six chapters,the specific content is as follows:Chapter 1:Introduction.This chapter mainly introduces the research background and significance,research synthesis,study ideals and methods,as well as the innovation of this paper.Chapter 2:The theory of financial risk control.This chapter mainly elaborates the theory of financial risk control,lists and summarizes the theory of financial risk control of domestic and foreign scholars.Chapter 3:The situation of JH company's financial risk and the analysis of the reasons;frstly,introduce the company briefly,and then a detailed analysis on the financial situation and financial risk.Chapter 4:JH company's risk control problem and cause analysis.Analyze the issue of financial risk control combined with JH's specific circumstances,and the causes of these problems.Chapter 5:JH company's Financial Risk Control Improvement Suggestions.give suggestions on improvement combined with the specific causes of financial risk control.Chapter 6:Conclusion and Prospect.This chapter firstly gives a systematic summary of the analysis of the full text and lists the shortcomings in the analysis process,then claims the prospect of this paper.This paper used the domestic and foreign risk control theory,combined with the current economic environment,to analyze the JH company's financial risk control system.And puts forward some suggestions for the improvement of the risk control of the company in order to provide reference for the financial risk control of the automobile industry.