Y Company’s Financial Risk Identification And Prevention

As the economic environment of increasingly complex,increasingly fierce industry competition,enterprises in the face of opportunities and faced with various challenges and risks,under the background of advocating for the sustainable development of big,new energy,with its excellent properties of low pollution,renewable,twinning to become the world’s countries are scrambling to develop new industries,the development prospects are bright.China also attaches great importance to the development of new energy industry,and as a strategic emerging industry supported by the state,the support is very strong.Even so,the new energy industry is facing more severe challenges due to its large investment,long payback period,financing difficulties and other characteristics of the industry.Any enterprise has a financial risk,the enterprise can not completely eliminate the financial risk,can only take appropriate measures to prevent and control.Financial risk endangers the sustainable and stable development of enterprises,damages the economic interests of enterprises,and even threatens the survival and development of enterprises.Therefore,it is crucial for enterprises to identify financial risks as early as possible and take appropriate measures to prevent financial risks.This paper selected company Y as the research object.Company Y belongs to the power industry and is a kind of new energy industry in China.In addition,with the decline in the growth rate of the whole society’s electricity consumption,the decline in wind resources,the continuous power rationing in the new energy generation industry,the decline in transaction price,and the limited power supply area,company Y is struggling and facing huge financial risks.Based on the financial statement data of Y company from 2014 to 2018 and relevant theoretical knowledge,this paper USES indicator analysis method and statement analysis method to identify the financial risk of Y company from the five aspects of earnings,debt service,operation,growth capacity and cash flow,and then makes a longitudinal comparison of the financial data of Y company in the past five years through the F score model.Because all the various environment,the different characteristics,various industries of various indexes of the mean is different also,to guarantee the accuracy of the evaluation result objective,in this paper,using the efficacy coefficient method and Y company with the industry standard for transverse comparison and analysis,through the analysis found that Y company solvency risk,operation risk,the risk of cash flow,etc.,mainly for accounts receivable amount is too big,unreasonable capital structure is relatively poor,poor liquidity,profitability,based on the evaluation results,this article has analyzed from two aspects of external factors and internal factors affect Y the influence factors of the company’s financial risk.Finally,based on the results of identification,evaluation and analysis,the financial risk prevention Suggestions of company Y were put forward.