Research On Financial Risk Evaluation And Control Of S Company

As a basic raw material industry closely related to the development of China’s national economy,the cement industry not only plays a huge role in the reconstruction of the industrial base,but is also a major position for to achieve green development in industrial field.Its products used in large quantities in many fields,including civil engineering and construction,water conservancy,and national defense.The cement industry in China is featured by heavy pollution and high energy consumption with a high consumption of energy in the production.Our country is heading for the "low-carbon" development and the cement industry is one of the key governed subjects.In this context,how to deal with the prevention and control of financial risks is an urgent task for cement companies.This paper takes Company S,one of the top five companies in the cement industry in terms of revenue,as research object.Based on the current situation of research in domestic and abroad,it uses risk management theory,capital structure theory,internal control theory,and principal-agent theory as the theoretical basis,and adopts literature research method,case study method and qualitative and quantitative analysis method to study the evaluation and control of financial risks of Company S.This paper mainly includes six aspects,firstly,it introduces the background and significance of the topic,reviews the current situation of domestic and international research,and presents the main contents,research methods and research contributions of this paper;secondly,it elaborates the relevant concepts and theories;thirdly,it selects the financial data of Company S from 2012 to 2021,analyzes its current financial situation,applies the analysis of financial indicators,identifies its debt service risk,operational risk,profitability risk,growth risk and cash flow risk,and conducts a comprehensive analysis of financial risk using the leverage analysis and Du Pont analysis;next,it uses factor analysis and Entropy weight TOPSIS method to evaluate the financial risk of Company S horizontally and vertically,to comprehensively evaluate the degree of financial risk of Company S;than,based on the results of financial risk identification and evaluation,the paper discovered the causes of financial risks of Company S.Finally,the paper proposed corresponding financial risk control strategies in terms of both external business environment and internal management of the enterprise,including paying close attention to policy guidance and accelerating the transformation and development of the enterprise;looking for new growth points in the industry by going beyond the traditional industry track;broadening financing channels and optimizing the capital structure of the enterprise;strengthening cost control and improving economic efficiency of the enterprise;controlling the scale of inventory and strengthening inventory management of the enterprise;strictly control the capital investment and reasonably arrange the investment projects and optimizing cash flow to improve the liquidity of the enterprise.All the above measures aims to help the company to do better in controlling financial risk and provide a reference for other company in the same industry.