Study On Financial Risk Evaluation And Control Of FAW CAR CO.,LTD

In recent years,the manufacturing level and control level of China's automobile industry have been significantly improved,but due to the long-term accumulated technical and market advantages of foreign automobile manufacturers,China's traditional automobile manufacturers are still facing fierce competition.The automobile manufacturing industry has a large investment recovery cycle and a huge supply chain.The production and operation status of the upstream spare parts related industry and the downstream automobile trade industry will have a great impact on the development of automobile manufacturing enterprises.In the fierce market competition,automobile manufacturers will face various risks,such as policy risks,legal litigation risks,exchange rate risks,default risks,etc.,which will eventually be reflected through financial risks.Therefore,how to do a good job in the evaluation and control of financial risks is of great significance for enterprises to understand their own problems and improve the level of anti-risk.In this paper,based on relevant theories of financial risk evaluation and control,through field investigation and review of existing literature,theory with practice,the selection of the Chinese auto industry's first auto works of listed company Car Co.,Ltd as the research object,its financial risk assessment and control for the following research: first of all,analyses the development course and the financial status of Faw Car,analyze the possible internal and external factors affecting the formation of financial risk,and demonstrates the Faw Car the importance of financial risk assessment and control,and the possibility of the enterprise financial risk.Secondly,the risk evaluation index system and evaluation method are established.To choice of financial risk evaluation of the initial indicators,using entropy value method and the method of correlation analysis accord with the condition of Faw car financial risk indexes and determine the index weight,set up financial risk evaluation system,using the efficacy coefficient method for integrated risk rating of the financial risk level in recent years,for the whole enterprise's financial risk comprehensive evaluation.The results show that the financial risk is extremely unstable,the profitability is not strong,the operation ability is weak,the liquidity risk is large and the development trend is not optimistic.Finally,according to the results of the comprehensive evaluation of each year and the specific index scores,combined with the factors affecting the financial risk,the financial risk control measures such as cost control,inventory planning,optimization of capital structure and enhancement of research and development level are proposed from four aspects,in an effort to control the financial risk within a reasonable range.It is helpful for Faw car to improve the level of risk management,implement effective financial risk control,enhance enterprise value,avoid the occurrence of financial risk volatility again,and provide some reference for other enterprises in the same industry to implement effective and comprehensive financial risk evaluation analysis and control.