Research On The Construction And Evaluation Of SH Company Financial Risk Early Warning System Based On Cash Flow

With the development of China’s capital market entering the new normal of economy,the intensification of industry competition and the changing needs of consumers,the external business and financing environment of the company is becoming increasingly complex,and the pressure of internal financial management is increasing.In this situation,it highlights the importance of financial risk early warning.A set of scientific and effective early warning system can help enterprises find potential risk problems in advance and make improvement measures in time,so as to provide guarantee for the healthy development of enterprises.Among the many factors that lead to the financial risk crisis,the shortage of cash flow is very common and important.No matter the size of the enterprise,the rupture of the capital chain will cause incalculable losses to the enterprise.At the same time,in the research of financial early warning,cash flow index is also helpful to break the limitations of traditional financial early warning index,reveal the financial situation and operation ability of enterprises more truly and accurately,and meet the needs of financial risk early warning.Based on this,this thesis selects SH company as the research object,constructs the financial risk early warning system from the perspective of corporate cash flow,and helps the company to evaluate and improve the current risk.This thesis first introduces the background and significance of the research,through the summary of the financial early warning research results,forms the research ideas of this thesis,and through the overview of the relevant theories and methods of the cash flow financial early warning system,shows its advantages and feasibility,and provides the theoretical basis for the construction of this early warning system.Then,from the financial aspects such as operation,financing,investment and other non-financial aspects such as internal management,industry development to identify the risks of SH company,combined with the shortcomings of SH company’s early warning status,this thesis proposes the necessity of constructing cash flow financial risk early warning system for SH company.Finally,financial indicators and non-financial indicators based on four aspects of cash flow,namely,solvency,profitability,development ability and financial flexibility,are selected to construct the financial early warning indicator system by using scientific methods,and to obtain the potential risk crisis of SH company,and corresponding improvement measures are proposed through risk analysis.Through the research of this thesis,it is found that sh company has some financial risks,such as insufficient debt repayment guarantee ability,weak profit-making ability of main business,large external financing pressure,and the investment return rate of most projects can’t reach the expectation.In view of the above risks,this thesis puts forward countermeasures and designs countermeasures from the perspectives of management environment,capital control,cost management mode,information construction,etc Put forward the operation guarantee measures of SH company’s financial early warning system,hoping to provide some guidance for SH company’s future good operation and development.