Research On Debt Risk Assessment And Prevention Of China's Building Decoration Industry

Building decoration industry has important effects on the economic development of our country's industry.Since the reform and opening up,China's building decoration industry shows the high speed growth in GDP every year.With the continuous maturity and improvement of the whole construction industry,the building decoration industry has gradually changed from the fragmented traditional industry to the core industry with mature industry market.The development prospects of building decoration industry are all optimistic,but we should also aware that lots aspects of the industry need to be promoted.The building decoration industry has its own characteristics,like the demand for funds in the process of operation,high debt ratio,long project cycle,and so on.The characteristics hide financial risks for the future enterprise operation.Among the financial risks,the most acute financial problem is debt risk.When these enterprises encounter debt risk,it will affect normal operation of the enterprise,and even causes bankruptcy.Therefore,in this paper,it will research about debt risk of the building decoration industry enterprises accurately,and establish the debt risk evaluation system.The research idea of this paper is as follows: Firstly,based on the debt analysis of building decoration industry,debt risk evaluation is divided into three stages: financing risk,operating risk and solvency risk.Secondly,in the three stages of the division,appropriate debt risk evaluation index is selected,and a complete debt risk assessment system for building decoration industry is constructed.After comparing the advantages and disadvantages of multiple financial risk assessment methods,the method of combining analytic hierarchy process and fuzzy comprehensive evaluation method is finally decided.Thirdly,taking DR home decoration group as an example,analyzes the change trend of the debt risk of the group from 2014 to 2016 and puts forward improvement measures to the group's debt risk control.Finally,some suggestions are provided for managing the debt risk of building decoration industry,so as to benefit the healthy development of the whole industry.