Research On Identification And Control Of Financial Risk In IFLYTEK

Difference from the United States and Europe,which own many unicorn enterprises of software and information technology services industries,the development of the software and information technology services industries start relatively late in our country and is still at the beginning of the exploration stage.At the same time,with the rapid development of the Internet and the increasing emphasising on the software and information technology services industry by the country,the related enterprises in the software and the information technology service industry are thought highly of on the market,and the stock prices of the related enterprises are often soaring.But on the contrary to the trend of rising in the stock prices and broken news of rising frequently in the market capitalization,the companys' s profitabilities are often unable to match the rising market price.Due to the characteristics of software and information technology services industry,there is the normal condition that the companies need huge investment in the beginning of the development period which lead to many enterprises rely heavily on government subsidy operation.Combined with the uncertainty of the current market environment,many enterprises in the industry are not aware of their lackness in the abilities of risk management and risk prevention awareness,which leads to the wrong judgment of the enterprises' ability to bear the risk of their own.In the long run,it affects the operation of the enterprises.This paper based on the domestic and foreign research results.In the first,combining with the characteristics of China's software and information technology service industry,this paper use the PESTEL analysis method to analysis the overall environment of the software and information technology services industries from the political environment,economic environment,social factors,technical factors,environmental factors,legal factors six aspects.In the second,this paper introduces the case of iFLYTEK and analysises financial risk of iFLYTEK from the financial and non financial indicators.From the perspective of financial risk analysis,this paper first studies the company by factor analysis.Through screening 71 listed companies that belong to the software and information technology services industry,this paper used factor analysis to set up 11 indicators.According to the result of factor analysis,the 4 factors can be explained to profitability,solvency,operating capacity,and cash flow capacity.Through the ranking of these 4 aspects,this paper identified the factors which ranked in the later in the selected samples,and then evaluate for their financial risks.Then we use the financial data of iFLYTEK from 2011 to 2016 to explore the causes of risk in profitability ability,debt paying ability,operation ability and cash flow capability.Then this paper analyzed the financial risk of iFLYTEK from the perspective of nonfinancial indicators.Finally,combining with the analysis of the data and trace back to the causes of the financial risk,this paper gave some advice and got inspiration.