Research On Working Capital Risk Early Warning And Prevention And Control Of Henan Branch Of China Construction Fifth Engineering Bureau

It’s an extraordinary time that COVID-19 and Evergrande have had a tremendous impact on the real estate industry,as well as the whole country.Then,Sunac,Greenland other real estate giants fell one by one,the construction industry was directly impacted.In addition,The low consumption and the tight financial funds limited construction funds of government projects,have been Coupled with the scale of construction enterprises expanding.It is worth mentioning that the issues of enterprise and project management are prominent.Especially,the capital risk problems are prominent.It’s reflected in the following aspects: firstly,Policy macrocontrol,Real estate purchase restriction,Financing control and Cash flow restriction into real estate enterprises are important parts of the symbiotic chain,which can seriously affect the construction enterprises.Secondly,the next link in the symbiosis chain is small and micro enterprises and migrant workers’ labor enterprises.On the one hand,The policies could increase supports for private enterprises,on the other hand,the much more interests of migrant workers may increase payment pressure on enterprises;Thirdly,The high leverage,Alarge amount of financing and the risk of repayment when due,especially the limited loans of some small and micro enterprises,caused more private short-termloans;Fourthly,The collection and payment node,Indicator white wash phenomenon of listed enterprises disclose the operation of the company,and the lack of company’s final executive ability may all lead to these problems.Therefore,The article is rooted in the construction enterprises,focused on the Henan Branch of China Construction Fifth Bureau,while makes a comprehensive analys based on the systematic macro risks such as national policies and market economy.Taking the data of the company’s financial statements from 2014 to 2020 as the sample,the weights of every index are determined by combining the entropy method,select 40 typical projects of the company to discuss in detail the operation of financial in dicators in 2020,Use the efficacy analysis method to warn the working capital risk,and analyze the specific attributes of no police,light police,medium police,heavy police and huge police projects.And put forward targeted measures to optimize working capital from multiple angles to effectively prevent and control risks,which has a strong guiding significance for the company’s financial management decision-making.