Research On Financial Risk Identification And Control Of A Textile Enterprise

In recent years,the financial risk of China's textile enterprises is increasing.Most of the textile enterprises in China are small and medium-sized enterprises,and the financing channels are few and difficult.Most of the enterprises break the capital chain due to the debt maturity.The sharp decline of order volume,high labor cost and rising cost of raw materials make textile enterprises' financial risk suddenly increase.The lack of production technology,innovation and the shortage of brand value make the profit margins of textile products very limited.If the textile enterprises want to seize the opportunity and develop better in a difficult living environment,it is necessary to improve the level of financial risk management,analyze the internal and external environment of the enterprise,make timely identification and effective evaluation,and take control measures to control the financial risks.Therefore,how to effectively identify and control financial risks has become an urgent problem to be explored and solved in China's textile industry.Based on the theory of financial risk at home and abroad,this paper studies the financial risk identification and control of A company.First,we use 19 single financial indicators to identify the financial risks of A textile enterprises.Then through the use of analytic hierarchy process,we get the weight of the financial index to the financial risk,and based on the standard value of the enterprise performance evaluation(2016).On the basis of the determination of the weight of the analytic hierarchy process(AHP),the effect coefficient method is used to evaluate the comprehensive early warning value and each index of A company,thus the textile enterprise is made.The financial risk is identified and evaluated on the basis of quantification.Through the study,it is found that:(1)Most of the financial indicators of A textile enterprises,especially their profitability and Solvency Index,are generally lower than the industry average,even lower than the lower value of the industry,and there are many declining trends in recent years,which may face greater financial risks.(2)Through the analytic hierarchy process,in the selected 19 financial indicators,the ratio of net assets yield,speed ratio and main operating profit ratio has a large proportion to the financial risk of A company,and the lack of profitability and solvency has a significant negative impact on the financial situation of A company.(3)Referring to the standard value of the financial indicators of the textile industry in the "standard value of enterprise performance evaluation(2016)",the comprehensive early warning value of A company is calculated by the efficiency coefficient method.Compared with the financial risk early-warning grade table,the A textile enterprises can be judged to be in the state of heavy alarm and face a larger financial risk.This paper analyzes the change of A's external policy environment,the change of market environment and the change of resources and environment.Through the analysis of the internal factors,it is found that the capital structure of A company is not reasonable,the level of inventory management is insufficient,the product lacks competitive advantage and the brand value is insufficient.Many factors inside and outside lead A company to be at a relatively high level of financial risk.Finally,in order to enhance the profitability and debt paying ability of A company,this paper puts forward four risk control measures,such as widening the financing channel,improving the management level of inventory,improving the ability of independent innovation and paying attention to the brand value in view of the problems in A company.Textile enterprises in China are mostly at high financial risk,so we need to improve the level of risk management so as to seek steady and healthy development.This paper hopes to provide some information for the research of financial risk identification and control in the field of textile industry through research.At the same time,we can further improve the financial risk evaluation system of China's manufacturing industry and deepen the research on financial risk.