Research On LN Coal Financial Risk Evaluation And Control

With the deepening of China's supply-side structural reform,coal enterprises are facing more and more complex financial risks while meeting development opportunities.The development of China's coal industry in the golden decade,there is a surplus of supply situation,forced into a period of forced reform.Measures to cut production capacity have provided opportunities for deepening the reform of the coal industry,and the disorderly expansion of production capacity by coal producers has been curbed.At the same time,affected by the financial crisis,environmental protection law enforcement has become increasingly strict.How to reshape medium-and long-term growth power has become a major challenge coal enterprises must face.LN coal follows the market mechanism and responds to the national policy.It merges and reorganizes 24 small-scale coal mines.The funds used are mainly borrowed by Banks and the financial leverage is high.The return on invested assets of an enterprise cannot satisfy the daily operation,and the cost of capital cannot be compensated,leading to the prominent financial risks.Therefore,how to timely discover the financial risks of coal enterprises and ensure their sustainable development is particularly urgent and important.This paper takes LN coal industry as a case study.Firstly,the research background and significance are elaborated.The relevant theories and research results of financial risk control at home and abroad are systematically sorted out by literature research method.Secondly,it defines the concept of financial risk and financial risk control.Thirdly,the factors influencing the financial risk of the enterprise were sorted out from the inside and outside,and the relevant financial data and indicators of the case enterprise in the last four years were selected by using the analytic hierarchy process and the efficiency coefficient method.The financial risk existing in LN coal industry was quantified and analyzed to find out the risk drivers.Finally,specific financial risk control measures are proposed according to the actual situation of LN coal industry.The study found that the profitability of LN coal industry fluctuates greatly and is always in the early warning range.The asset operation capacity of LN coal industry has been in the early warning range for two consecutive years.The solvency also fluctuates and is in the early warning range.In view of the above problems,the following countermeasures are proposed:(1)external risk prevention measures emphasize that facing the uncertainty of external economic policy environment,it is necessary to ensure the necessary financial flexibility and formulate emergency plans;(2)in terms of financing risk management measures,emphasis should be laid on optimizing the financing decision-making mechanism,improving the capital structure,exploring multiple financing channels,controlling the debt scale and reasonably determining the financing opportunity.(3)in terms of profitability management measures,emphasis should be laid on diversified businesses to reduce costs and increase profits;(4)investment risk control measures,emphasizing the feasibility study of investment projects,strictly controlling investment projects,and accurately supervising the investment process.(5)in terms of capital operation measures,"three controls" are emphasized,namely,strict control of inventory,accounts receivable and cash flow.