Financial Risk Analysis Of Listed Mining Companies

As an important industry to grasp the national mineral resources,the stability of the ec onomic development of the production industry has a considerable impact on the natio nal economic development.The impact of the international financial crisis has led to a downturn in the international market.The sustained economic downturn has greatly im pacted the mineral industry.In addition to the cyclical factors of industry development,the performance of related activities in the mineral industry is not very active in the gl obal scope.In China,due to the influence of policies such as capacity removal,the ope ration of mining listed companies is restricted to a certain extent.At the same time,wit h the complexity of the market environment,mining listed companies and the whole m ining industry will face new opportunities and challenges.There are many uncertaintie s in the operation of the company,and the financial risks of mining listed companies w ill be more diversified.In the fierce market competition environment,on the one hand,mining listed companies need to integrate resources to improve their core competitive ness,on the other hand,they need to strengthen the prevention of financial risks.Unce rtain financial risks are likely to cause companies to suffer major economic losses,so t he study of financial risks of mining listed companies has become inevitable.This paper uses LPM model to quantify the probability of financial distress of mining l isted companies in China,ranks the financial risks of 27 mining listed companies for f our years,and chooses three representative mining listed companies through risk ranki ng,namely,the largest energy source with the highest financial risk,the lowest open-p it coal industry and the most changeable Anyuan coal industry.Through the use of LP M model,Through the analysis of the six financial indicators of net profit growth rate,total assets return rate,liquidity ratio,working capital to total assets ratio and total asse ts turnover rate,this paper seeks for the possible financial risks in the operation proces s of mining listed companies,and puts forward some suggestions on risk prevention in view of the factors that may cause financial difficulties,in order to make mining listed companies effective in the future development process.Provide reference for avoiding financial risks.