Research On Financial Risk Identification And Control Of The YD Electronics Manufacturing Enterprise Based On Cash Flow Analysis

With the acceleration of the process of economic globalization,the electronic industry has become an important field of the development of the world economy,and the competition of electronic manufacturing enterprises has become the dominant factor.In the face of the shortage of cash flow and the unreasonable financial structure,how to timely identification and prediction of potential financial risks,understanding the sources of financial risk,and take appropriate risk control measures is the reality and urgent task for the enterprise.Therefore,the study on electronic manufacturing enterprise financial risk management has attracted more and more attention.For enterprises,risk is both a danger and an opportunity.If enterprises can correctly identify financial risks and strengthen financial risk management,it is important to create a safe development environment for enterprises and win opportunities for development.However,cash flow and financial risk are closely related.Through in-depth analysis of cash flow,enterprises can better identify and control the occurrence of financial risks,it is particularly important for enterprises to identify financial risks by using cash flow information.In this paper,the related literatures about cash flow,financial risk and financial risk identification and risk control management have been read,then according to 2013-2016 years financial data of the YD electronics manufacturing enterprise,the identification and control of financial risk of YD enterprise based on cash flow has been discussed by adopting methods of literature analysis,case analysis as well as the analysis method combining qualitative and quantitative.Firstly,an introduction to the YD enterprise is conducted,and summarizing the operational characteristics and cash flow characteristics of YD enterprise.Secondly,the poor cash flow performance is identified from overall analyzing the cash flow structure of YD enterprise.Thirdly,the potential financial risks are identified from overall analyzing financial ratios in depth,however,it is found that YD enterprise have such problems as Large cash flow expenditure,poor cash recovery ability,high pressure of short-term debt-paying caused by purchase of raw materials,poor synchronism between cash flow and accounts receivable or net profit.Finally,according to the actual situation of the enterprise,the control of the financial risk of the YD enterprise is carried out and the related measures to prevent the financial risk of the enterprises are put forward from the three activities such as the business activities,investment activities and financing activities of YD enterprise to improve the enterprise's financial risk control system of YD enterprise,timely and effective to avoid financial risks to provide decisionsupport for improving the development ability of YD enterprise.