Research On Changan Automobile’s Financial Risk Assessment From The Perspective Of Working Capital Guarantee Ability

After more than 20 years of vigorous development in China’s passenger car market,sales began to decline in 2018,which means that the passenger car market has opened up stock competition.Affected by the industry environment,the sales of Changan Ford,an important joint venture brand of Changan Automobile,plummeted,and Changan Suzuki even withdrew from the Chinese market.Sales of its own brands were also sluggish,corporate development was frustrated,and the company’s operations faced certain financial risks.After studying some business cases and reading a lot of literature,you will find that all business activities of a company must be supported by working capital.The quantity and quality of working capital have a significant impact on the steady operation of the company.Financial risk assessment can more accurately assess financial risk.This article is divided into six chapters.The first chapter mainly elaborates the relevant research background and research significance,and then sorts out the research results of the scholars on the working capital guarantee ability and financial risk,and makes relevant comments on it.The second chapter is the theoretical basis.This part defines the relevant concepts and introduces the relevant basic theories and explains the financial risk assessment model that will be used in the following sections,laying a theoretical foundation for the subsequent research.The third chapter first introduces the financial status of Changan Automobile,and then analyzes its working capital guarantee ability.Through the analysis,it is concluded that the quality of Changan Automobile’s working capital guarantee is relatively high,but its working capital quantity guarantee is insufficient.Chapter 4 is the construction and application of Changan Automobile’s financial risk assessment system.This part uses qualitative analysis to initially select the financial indicators needed to build the risk assessment system,and then uses entropy method and correlation analysis to filter out the final indicators,and finally uses the effect The coefficient method evaluates the financial risks of Changan Automobile,and finally estimates that the financial risk levels of Changan Automobile from 2015 to 2019 are light police,medium police,medium police,medium police,and medium police.In order to verify the rationality of the selection of risk assessment indicators and the accuracy of the evaluation results of the efficacy coefficient method,this paper introduces the Z-SCORE model to verify it,and the verification results finally effectively prove the above-mentioned rationality and accuracy.Then analyze the results of the risk assessment and find out the causes of its financial risks.After analyzing the financial risks of Changan Automobile,the main causes of the financial risks of Changan Automobile are the major joint venture Changan Ford’s sales plummet which led to the decline in corporate profits and the insufficient working capital management resulting in low working capital turnover efficiency.Weakened the ability to guarantee the amount of working capital.The fifth chapter puts forward the corresponding financial risk control countermeasures from three aspects: improving enterprise risk management level,enhancing profitability and improving working capital management.The sixth chapter is the research conclusions and prospects.In this part,the research conclusions of this article are summarized,and the shortcomings in the article are also reflected,and the future development of the financial risk research field is prospected.