Research On Financial Risk Management Of Y Steel Co.,Ltd.

With the rapid development of my country's market economy,the risks faced by enterprises are becoming more and more complex.Financial risks are extremely common in all aspects of business operations.Therefore,as far as enterprises are concerned,how to implement effective financial risk management activities is of great significance for enterprises to deal with financial risks.Since the early days of the founding of the People's Republic of my country,the steel industry has always been an important part of my country's manufacturing industry.It has played an important role in my country's economic construction and the rise of national defense.However,due to the impact of the 2008 financial crisis in my country's steel industry,the good development trend of the steel industry has been reversed.In recent years,the development of my country's steel industry has been even more affected by economic frictions.The development of the industry is severely restricted,and the overcapacity of low-end products has caused the entire steel industry to face higher financial risks.At the same time,the Chinese government has also seen that the steel industry is facing a huge crisis,and has put forward the requirement that it is necessary to reduce the output and high debt of the steel industry.Therefore,in the context of reduced steel market demand and high leverage,steel companies need to take effective financial risk management and control measures if they want to survive in a long-term and healthy manner,and continuously enhance their ability to deal with financial risks.This thesis expounds the relevant theories by consulting and combing the domestic and foreign documents of financial risk management,and takes B Steel Company as the research object to study its financial risk status.First,through the analysis of the three major statements of B Steel Company from 2015 to 2019,it explains the financial status of B Steel Company.Conduct horizontal trend analysis of financial indicators of different financial risks and vertical comparative analysis to identify the specific financial risks faced by B Steel Company.Secondly,the entropy method determines the index weight,and combines with the Pearson correlation analysis to filter out the financial risk evaluation index.The financial risk evaluation model is constructed based on the entropy method-efficiency coefficient method,and the risk level of B Steel Company's operational risk,financing risk,investment risk and cash flow risk is summarized.It is concluded that B Steel Company has problems such as extremely poor solvency,single financing structure,high asset-liability ratio,slow inventory turnover,limited development prospects,and low profitability.Finally,B Steel Company proposed a reasonable short-term option.And scientific and reasonable control measures such as long-term borrowing,diversified financing,optimizing product structure,diversified operations,and strengthening inventory management.