Analysis On Financing Risk Of Huatai Automobile

Financing activities is very important for enterprise management,enterprise’s development often need to be in the process of financing,but the financing process will inevitably produce risk,for the enterprise,how to scientific and reasonable arrange financing,how to effectively control these risks,is the enterprise financing activities need to pay close attention to a subject.Automobile industry is one of the economic pillars of China,with long industrial chain,high correlation degree,wide employment,large consumption and other characteristics.Since 2018,the production and sales volume of China’s auto industry have started to decline due to the impact of the macro-economic slowdown,and the current situation of China’s auto industry is not optimistic until 2020.Huatai automobile is mainly engaged in the manufacture of complete automobiles,key parts and components,and the sales of auto parts.With the downturn of the auto industry,huatai automobile’s performance is not good,but due to the large financing scale,the financing risk increases accordingly.Taking huatai automobile as an example,this paper firstly analyzes the current financial situation of huatai automobile,and analyzes the causes of its financing risks through the selection of financing methods and the manifestation of financing risks of huatai automobile,so as to identify the financing risks of huatai automobile.In the evaluation of huatai financing risk,the efficiency coefficient method is used to estimate the size of huatai financing risk.Huatai’s financing is mainly debt financing,and a large amount of debt,but due to poor performance and insufficient solvency,the enterprise is faced with a large financing risk,and put forward relevant Suggestions on financing risk prevention of huatai automobile.