Research On The Financial Risk Assessment Of YG Company

The impact of financial risk on enterprise operation can not be underestimated,but few companies objectively,truly,comprehensively and publicly disclose their own financial risks,so as for enterprises to have an in-depth understanding of their own financial risk status.It is particularly important to properly and accurately evaluate the company’s financial risks.Real estate industry capital demand,large market size,input-output cycle is long,high leverage,high debt,in recent years to cope with housing price bubble accumulation,China’s regulators to the real estate market policy adjustment,combined with the end of 19 outbreak of the impact of the global economic environment,the real estate market increasingly recession,the resulting risks and uncertainty.This paper is based on the financial risk and financial risk evaluation theory,With YG Real Estate Company,Building a financial risk evaluation system based on the efficacy coefficient method,Select its key financial indicators from 2016 to 2020 based on industry characteristics,To evaluate and analyze its financial risks,It was then found that YG company’s financial risk rating from 2016 to 2020 was high risk and high risk,There are problems such as insufficient financial risk awareness,unreasonable capital structure,improper investment decision-making and operation management,on this basis,According to the actual situation of YG company,Targeted countermeasures are formulated for enterprises: in terms of financing,Adjust the debt structure.Improve the scientific nature of investment decisions in investment.In terms of operation,enterprises should optimize inventory management.In terms of development,reasonable development plans should be formulated.At the same time,we should also improve the awareness of risk prevention,and the ability to adapt to the external environmental changes.On the one hand,the research in this paper can help YG company to identify and prevent financial risks more comprehensively,so that it can have a healthy and sustainable development in the future.On the other hand,it provides examples for other real estate enterprises,which can make enterprises pay attention to financial risks,improve risk prevention awareness,and have certain reference value for enterprises in financial risk prevention and control in other industries.