Research On Financial Risk Analysis And Control Of TG Construction Company Based On Cash Flow

The construction industry is one of the basic industries in our country.It has the characteristics of large project fund demand,long project cycle,and slow fund recovery,which contains relatively large financial risks.How to control financial risks and enable enterprises to develop in a healthy and efficient manner has become an important issue that construction enterprises urgently need to solve.The paper selects TG Construction Company,a representative enterprise in the construction industry in H Province,as the research object.From the perspective of cash flow,the paper aims at the problem of poor cash flow generated in various financial activities of TG Company,and uses cash flow management theory and financial risks.Based on management theory,through the analysis of the company’s financial data from 2015 to 2019,the financial risks faced by TGConstruction company are studied.First,it analyzes the company’s cash flow,cash flow and cash flow structure.On this basis,the company’s cash flow structure,cash flow ratio and cash flow velocity are further analyzed,and the financial risks of the company are identified.In addition,the Analytic Hierarchy Process and the fuzzy comprehensive evaluation method are used to evaluate financial risks,and in-depth judgments of the severity of financial risks faced by TGConstruction companies in the development process.Research shows that the weight of the “poor” level of financial risk faced by TG is39.07%,indicating that its financial risk is relatively serious.The reasons include: poor cash flow of the company,lack of awareness of financial risk prevention by the management and employees of the company,and failure of the company.Establish a complete risk early warning system.In order to prevent financial risks more effectively,this article puts forward preventive measures from two aspects: cash flow management and daily activity management:Cash flow management: formulating reasonable credit policies and collecting project payment plans,and strengthening corporate accounts receivable Management of funds,strengthening the control of corporate costs and expenses,strengthening the supervision of corporate cash flow,etc.;daily activity management: strengthening corporate internal control,standardizing corporate competitive employment systems,etc.Hope to provide reference for enterprises and promote the healthy development of my country’s construction enterprises.