Research On Financial Risk Identification And Evaluation Of HW Engineering Construction Enterprises

The 20 th National Congress of the Communist Party pointed out that this decade was the largest scale and the largest investment in government-subsidized housing projects in China’s history,and hundreds of millions of people like to realize their dream of living in peace.At the same time,it also shows that this decade is a decade of unprecedented rural construction and great changes in rural appearance,and the majority of farmers have more sense of gain,happiness and security.Thus it can be seen that,for the vision of a better life of the Chinese people,China’s engineering and construction industry will still face more opportunities in the future,and then,more challenges and risks will arise.Therefore,this paper selects HW Company,an engineering and construction enterprise,as the research object.Through the identification and evaluation of the financial risks of the company,the financial risk-related theories are somewhat enriched,and we also hope to give related parties or peer enterprises a reference significance.The main content of this paper is to analyze the financial situation of HW Company.By analyzing the external risk factors of industry competition faced by HW Company,and starting from the analysis of balance sheet,income statement and cash flow statement,this paper studies the corresponding financial data indicators of HW Company,and judges the internal risk factors of the company.Then it analyzes the causes of financial risk of HW Company,including: poor internal management of financial risk,unreasonable formation of capital structure,lax control of project cost,and lack of attention to internal management in cash flow management;At the same time,it includes the external reasons such as the intensification of industry competition and the rise of material and labor costs.Finally,combined with the analysis and research results,it is proposed that HW company should have a perfect financial risk internal management system in the process of development,train professionals to identify risks,and at the same time,establish the corresponding early warning mechanism to effectively and timely convey information to enterprises.In the process of project construction,it is necessary to strictly control the project cost,actively adapt to the market changes,strengthen the supply chain management,and actively respond to emergencies.Finally,in the process of operation,strengthen and consolidate the management of accounts receivable,optimize the investment,enhance the liquidity of capital,so that HW company can operate healthily and well.Through the identification and evaluation of the financial risks of HW company,it can make reference to and help the enterprises of similar size and business type.