Research On Financial Risk Management Of Snack Food Industry

With the socio-economic development and the continuous increase of the income of Chinese residents,people have also raised higher requirements for the safety,health,diversity and innovation of snack foods,and snack food companies have continuously upgraded their products,innovations and channels.Under the joint action of both the supply and demand sides,the consumption of snack foods is growing at a percentage far higher than the double digits of the overall economic growth.However,the snack food industry has lower barriers to entry,serious product homogeneity,and intensified market competition.In particular,the consumption of ecommerce channels breaks through geographical restrictions coupled with an efficient distribution system,transparent prices,and reduced the industry’s gross profit margin,while leasing,Labor,drainage,and distribution costs remain high,and the overall industry’s profitability has declined,resulting in increasing financial risks of the snack food industry.Therefore,strengthening the research on financial risk management in the snack food industry has certain theoretical and practical significance.This thesis takes the financial risk management of the snack food industry as the research object,and comprehensively uses the literature analysis method,factor analysis method,ratio analysis method and case analysis method to conduct research on the snack food industry.First,it discusses the development of financial risk management and introduces related theories;Secondly,use the PEST analysis method to carry out a strategic analysis of the development status of the snack food industry and industry competition,and identify financial risks facing the industry from financing,operation,profitability,sustainable growth,and investment through data such as financial indicators;Then,using SPSS statistical software,construct factor analysis model,the financial risk value of each sample in 2018 and the typical sample calendar year was calculated,in compare with the identified and analyzed risks,to test the validity of the model.Finally,the identified and the assessed financial risks provide targeted financial risk prevention strategies.Through research,this thesis believes that the main financial risks of the snack food industry are reflected in: the financing channels of listed snack food companies are too dependent on equity financing,and the application of financial leverage is insufficient;mainly through the e-commerce platform to sell snack food companies with multiple categories and homogeneity,low gross profit,and slower inventory turnover,which lead to greater profitability risks;while snack food companies,which operate directly through offline businesses,operates with heavy assets and the larger operating leverage.operating profits accelerate decline when there is insufficient product innovation and weak brand influence.& continuing operations exist uncertainty risk.It is hoped that the research in this thesis can provide effective risk warnings for the development of the snack food industry,and at the same time provide effective strategies for preventing,reducing and effectively controlling the financial risks of the industry.