Research On Financial Risk Control Of L Auto Company

2017 is a crucial year for the full implementation of the 13 th Five-Year Plan.China's economy has continued its steady progress in the past year,and the current economy has shifted from a high-speed growth stage to a high-quality development stage.At the same time,China's auto industry has also shifted from the medium and high-speed growth of many years to the tackling stage of “quality improvement”.A new round of technological revolution is sweeping the world,and it has put forward new requirements for the development of the automobile industry.It is a general trend for automobile manufacturers to transform and upgrade to low-carbon,electric,intelligent and shared.At the same time,in 2017,China's subsidy policy for new energy vehicles was adjusted,the main responsibility for promotion and application was implemented,and the punishment mechanism was established.The new energy subsidies were degraded,which had a great impact on the automobile market,plus the preferential tax rate of purchase tax.The reduction,the industry competition is intensifying,and automobile manufacturers are facing a lot of pressure.The automobile industry is the pillar industry of China's economy.Therefore,in the current market economy environment,automobile manufacturing enterprises should pay more attention to strengthening their awareness of financial risks,rationally control financial risks,and maintain competitive advantages so that enterprises can remain invincible and promote China.economic development.This paper selects the listed company L Auto Company as the research object,and divides the research in this paper into six parts.The first part expounds the research background,research significance,and research trends at home and abroad,and summarizes the main research contents,research methods and innovations.The second part elaborates the theoretical basis of this paper.The third part first introduces the general situation of L Auto Company and its industry characteristics,including the current industry production and sales,the automotive industry facing transformation and upgrading,and the industrial policies and market risks.Then,using the quantitative analysis method,the quantitative analysis method is used to analyze the current situation of financing risk,operational risk and investment risk of L Auto Company,and the potential financial risk of L Auto Company is analyzed through non-financial indicators.Finally,the Z-score model is used to evaluate the financial risks of L Auto Company.After the evaluation,it is concluded that L Auto Company have large financial risks and bankruptcy,which should cause the company to pay enough attention.The fourth part explains the reasons for the formation of financial risks of L Auto Company.The fifth part is the author's control measures based on the company's financial risks,which are presented in detail from the aspects of financing risk,operational risk,investment risk and potential financial risk.The last chapter puts forward the conclusions and prospects of this paper,hoping to help L Auto Company's development and provide some reference for other companies of the same type.