Research On Financial Risk Management Of N Auto Parts Company

The auto parts industry is the pillar industry for the development of the auto industry,and it is a solid support for China's auto industry to become stronger and better.With the joint venture and cooperation promoted by reform and opening up,and the explosive growth of domestic automobile production and sales,China's auto parts industry has continued to grow.In recent years,the domestic and international macro situations have been complicated and changeable,and the development of the automobile industry is facing huge uncertainty.And auto parts companies are at the bottom of the automobile industry chain,and have been squeezed by upstream and downstream industries all the year round.In the auto parts industry,private enterprises account for 50%,especially a large number of small and medium-sized private enterprises.These small and medium-sized private enterprises,due to their small scale,low level of management,and weak awareness of financial risk management,etc.,have a greater financial risk and will even restrict the further development of the auto parts industry.The research object selected in this paper is N Auto Parts Company,which is a typical small and medium-sized private enterprise,mainly engaged in auto pipeline parts.Through the analysis of the company's external macro environment and the upstream and downstream industry environment,it can be seen that although the automobile industry experienced a downturn in 2018,it had little impact on the development of the automobile parts industry.Based on the analysis of the company's financial statements in the past 3years,this paper focuses on the calculation of financial indicators such as debt paying ability,operating ability and growth ability,and compares them with the industry indicators to fully reflect the financial risk management status of the enterprise.Through qualitative and quantitative analysis,the financial risk management problems of N Auto Parts Company are found out: the liquidity of funds is relatively poor,and there is the risk that short-term debts cannot be repaid;The capital structure is unreasonable and the debt ratio is too high.Inventory and accounts receivable turnover are slow,occupying the company's working capital;Negative growth in main business and lack of growth ability of the company;Higher cost results in lower net profit and poorer profitability.Then,the management of N Auto Parts Company involving these risks is deeply analyzed to find out the reasons and make management optimization.The specific financial risk management countermeasures mainly include seven aspects: strengthening internal environmental control,reasonably setting financial risk management objectives,improving the accuracy of event identification and analysis,enhancing risk response capability,strengthening control activities,strengthening information communication efficiency,and strengthening the perfection of supervision mechanism.