Financial Risk Identification And Evaluation Of Hualu-Hengsheng

With the declining demand for agricultural fertilizer,serious homogenization of products,increasingly strict resource constraints and increasing foreign competition pressure,these uncertain factors make the overall operation efficiency of the whole chemical industry is not good.And in environmental protection management and reform under the background of supply side,due to more stringent environmental requirements and to production costs rise,caused by the chemical industry admittance threshold is greatly increased,such as some poor coal chemical projects,environmental protection to meet more stringent environmental regulation,its production capacity will be affected by a certain,even is called rectification.Hualu-Hengsheng is a leading company in the comprehensive chemical industry in China.It is a new chemical enterprise with multi-industry co-production,involving all the links in the fields of production,sales,power generation and industrial heating.Although Hualu-Hengsheng has developed well in recent years,it still has some financial risks worth studying.This paper analyzes the current situation of financial risk research at home and abroad,compares and analyzes the deficiencies of financial risk research in China.On the basis of combing and studying relevant literature and theories,this paper puts forward the prevention strategies in combination with the current situation of financial risks in domestic enterprises.This paper analyzes the financial indicators of Hualu-Hengsheng in the past five years,It mainly focuses on financial risks existing in financing,investment,asset operation and income distribution,as well as the reasons for these financial risks,and establishes the financial risk evaluation index system of Hualu-Hengsheng.On the basis of the final analysis results,combined with Z₃model and FCF evaluation method,the comprehensive evaluation results of Hualu-Hengsheng financial risk are obtained through horizontal comparison,and the position of the enterprise in the industry is evaluated.At last,in accordance with the the financial risk evaluation results of Hualu-Hengsheng,this paper puts forward some measures to prevent financial risks.For example,optimize the asset structure and financing structure,broaden financing channels;Strengthen the overall financial budget management,improve the scientific level of investment decision-making;Strengthen accounts receivable management,improve inventory turnover efficiency;Strengthen the function of information transmission in the process of income distribution,strengthen the communication with shareholders and other relevant stakeholders.