Sunshine City Group's Financial Risk Analysis Under "high Turnover And High Growth"

Yango Group which is as typical “High turnover,High growth” business model of listed real estate company is to be case study in this paper.This paper elaborated that Yango Group of development history including start-up stage,developmental stage,take-off stage and merger stage,and collected Yango Group of annual financial reports and financing data from 2011 to2016 as analytical data.To make qualitative analysis and quantitative analysis based on real financial situation via logical way of induction and analyze according to the financial leverage and financial risks of study theory from oversea and domestic researchers.From Yango Group of current financial situation,this paper elaborated Yango Group of development history,all kinds of financial method used until 2016,Yango of “High turnover,High growth” business model,and disclosed why Yango Group has chosed the way of “High turnover,High growth”,and analyzed financial risks happened due to high financial leverage in Yango Group.To make Du Pont System of financial analysis model for Yango Group,this paper has proved the financial relationship between high financial leverage with return on equity under high financial leverage,and revealed Yango Group has faced to financial risks of “high leverage,low turnover,low profitability” under Du Pont System of financial analysis.Meanwhile,To make the popular financial EVA model further on the Du Pont System of financial analysis to disclose Yango Group of real profitability under high financial leverage and high accounting profit,the paper has additional remarked that high leverage lead to high financial risks to Yango Group.The main innovative work of this paper is that EVA model of usage as additional remark for Du Pont System of financial analysis.The important of research significance is to help Yango Group analyze financial risks and solution under high financial leverage,and how to mitigate financial risks for developing small and middle real estate company implement “high turnover”.