A Study On The Financial Risk Of Company S

In recent years,the research on the identification and management of financial risk has become more and more popular among different companies.This is mainly because that with the influence of macro-economics and domestic regulation policies,companies have to make continuous adjustments about their management,during which,all kinds of financial risks reveal themselves.As the inevitable products of market competition,financial risk exists in every aspect of a company,and it matters deeply in the healthy development of a company.Company S is a listed company in manufacturing industry from Shaanxi Province,which has witnessed the drop in its sales revenue and profit rate.Therefore,without enough attention or management,its financial risk can bring about severe economic loss,and even lead it into bankruptcy.Starting with the financial statements of Company S,a manufacturing company,its current managing situation is first introduced,then the financial risks in investing,financing,working capital and profit distribution are analyzed.The F-score model is also used to reveal the bankruptcy risk of Company S.Moreover,the reasons behind these financial risks are introduced after considering the macro-economic trend,domestic policies,industry characters and the inner situations of Company S.Last,solutions and suggestions are given to manage specific financial risks of Company S,including to improve the top-level design of financial management,the investment strategies,assets management,internal controls,and the income distribution of Company S.All the suggestions help guarantee the financial management and continuous development of Company S,and can also be considered by other companies in manufacturing industry.