Study Of T Co.,LTD Financial Risk Assessment And Control Under The Guarantee Of The Working Captial

Financial risk has always been a major concern of the company,which is subject to fluctuations between the company's capital supply and working capital requirements.As one of the pillar industries in China,the iron and steel industry experienced sluggish demand and weak production in 2015.With tight production and operating conditions were faced by T Company,the financial strains were highlighted.In addition,with the increase in production and business difficulties,the company's operating fund requirements for operating activities have increased its reliance on fundraising activities and the possibility of financial risks has increased.Accurately identifying,analyzing,evaluating,and controlling financial risks involves the immediate interests of the company and the company's sustained development is an important part of its business competition.This thesis elaborates the current research status of working capital support capabilities and financial risks from different perspectives at home and abroad.It also analyzes the meanings and characteristics of financial risks based on working capital support capabilities,the meanings and influencing factors of working capital support capabilities,and the ability to operate based on financial support.Financial risk evaluation dimension and financial risk evaluation method are based on this theory,combined the financial status with industry conditions of T Company.The thesis analyzed the financial status of T Company from the Balance Sheet,Income Statement,and Statement of Cash Flows,pointing out that T Company may exist financial risk from the aspects of working capital quantity and working capital guarantee quality.In view of the situation of T Company,the thesis selects 20 indicators in terms of working capital guarantee quantity,working capital guarantee quality,debt repayment ability,profitability,and development ability.The weight of each indicator is determined by the AHP method,and the fuzzy comprehensive evaluation method is adopted.Based on the data of T Company,the study concluded that the financial risk of T Company is a relatively large financial risk.Through the financial risk assessment of T Company,it was found that the working capital turnover rate of procurement,production and sales of T Company was relatively poor,which increased the demand for working capital protection.Moreover,the working capital of T Company was almost entirely from short-term financial liabilities and could not be guaranteed working capital supplies.Therefore,it is recommended that T Company should establish an effective financial risk assessment system,improve the financing structure to control the quality of working capital protection,strengthen the credit management of accounts receivable,implement supplier management to inventory to control the amount of working capital protection risks,and need attention Macroeconomic policies to control potential financial risks.The thesis studies the financial risks of T Company and establishes a scientific and effective financial risk assessment model for it to facilitate the company to keep abreast of the financial risk situation so that managers can effectively control the financial crisis before it occurs to reduce financial risks.