Research On Financial Risk Assessment Of JX Construction Company

The continuous and rapid development of national economy makes the market competition more and more fierce,and enterprises also face a variety of risks,among which the most important and most difficult to control and prevent is financial risk,especially for the construction industry,which is in the critical period of reform and transformation.At present our country’s construction industry barriers to entry is relatively low,broad market prospect and profit margins are bound to make the enterprise competition intensified,the enterprise survival and development in the future by the severe challenges,in this case,the enterprise operators need to strengthen the focus on financial risk,and adequately recognize and take measures to prevent and to control it in a reasonable range,In order to reduce the troubles and losses caused by financial risks.This paper takes JX Construction Company as an example,collects the financial data of the company from 2014 to 2020,establishes the financial risk evaluation system through the efficiency coefficient method,analyzes and explores the current situation and incentives of its financial risks,and puts forward effective methods of risk prevention accordingly.Firstly,the paper makes a preliminary judgment on the financial risk from the two aspects of the company’s external financial risk and internal financial risk,and combs the change trend and trend of relevant indicators in the past seven years.Secondly,build financial risk evaluation system,from the profit ability,debt paying ability,operating ability and development ability of four Angle for the selection of evaluation index,index weight assignment in the entropy weight method,using the efficacy coefficient method evaluation results,and on the basis of analysis of the financial risk of the JX construction company,to explore its causes.The study found that the cost is high,the low level of accounts receivable management as well as the unreasonable debt structure and so on is the direct cause of the financial risk,and JX construction company should strengthen the project cost management,enhance profitability,optimize the structure of enterprise assets,abundant financing way,strengthening the management of accounts receivable and accelerate the receivable settlement,improve the efficiency of resource utilization,Follow the trend of industrialization.The construction of the enterprise financial risk management system not only helps the managers of JX construction Company to quickly and accurately identify the financial risks that harm the interests of the enterprise and formulate solutions purposefully,but also provides solutions for the construction companies with similar financial risks and improves the managers’ attention to risk prevention.