Research On Financial Risk Assessment And Control Of A New Energy Vehicle Company

Since the emerging and development of the new energy vehicle industry,the government has given strong support to the industry in terms of taxation policies,subsidy policies,and traffic restrictions.As a result,most new energy vehicle manufacturers have achieved rapid development and profitability through government subsidies and other policies.However,with the tightening of government subsidies and the increase of the relevant policy threshold,the difficulties for new energy vehicle companies to obtain government subsidies rise significantly,and they are likely to face more serious financial risks.It is very necessary to analyze and evaluate their financial risks and put forward corresponding preventive measures to prevent its financial crises.This thesis first describes the connotation and characteristics of financial risks,and introduces the specific process of financial risk management,which lays a good theoretical foundation for the research of this thesis.Secondly,A new energy vehicle company is selected as the research object,and the basic operating status,financial status and external environment of Company A are discussed.By analyzing the relevant data of the company’s balance sheet and income statement,this thesis identifies the financial risks faced by Company A in financing,investment,operation and income distribution from the horizontal and vertical aspects.Based on the above financial risks identification of Company A,this paper first uses the F-score model to preliminarily measure the financial risk of Company A.The results show that Company A performed well in 2016,and its financial situation has deteriorated year by year since 2016.Secondly,according to the actual situation of Company A,15 financial indexes in four aspects,such as solvency,profitability,operation ability and development ability,are selected to build Company A’s financial risks evaluation system.The entropy method is used to determine the weight of each index,and then the efficacy coefficient method is used to assess Company A’s financial risks situation.The evaluation results show that the financial risks exist in the all five years,and the financial risks have gradually increased since 2016.Finally,in view of the financial risks faced by Company A,the thesis puts forward the control measures from the internal and external aspects respectively to effectively prevent the occurrence of financial risks.This thesis studies the financial risk and its control of Company A in order to provide reference for the financial risks management of other companies in the new energy vehicle industry.