| The real estate industry refers to a series of business activities based on land and buildings.It is one of the basic industries in China.In the construction of socialist modernization,it promotes the development of related chain industries and urbanization.However,considering the typical capital-intensive characteristics and its declining turnover capacity in recent years,the debt financing has become the main financing channel.With the implementation of the credit crunch policy in the real estate industry,the real estate enterprises are faced with financial risks such as large capital demand,financing difficulties and high leverage ratio in the whole operation process.Especially in the process of the debt financing,although the real estate enterprises can make full use of financial leverage to increase revenues for investors,they still have the risk of being unable to perform repayment obligations on schedule which might impact their survival.Therefore,the enterprises should evaluate and identify the financial risks in time,while taking corresponding prevention and control measures.Based on the principles of representativeness,typicality and generalizability,this paper conducts a comprehensive financial analysis on the specific situation and economic environment of H Real Estate Company.From the four dimensions of financing,profitability,operation and development,different financial indicators are selected to preliminarily identify the financial risk;Secondly,Z model is used to evaluate the overall risk of H real estate company and the reasons behind the problems are found out.Finally,in view of the specific problems and causes of H Real estate Company,relevant suggestions on financial risk control are put forward from the aspects of financing,profit,operation and development,so as to prevent or reduce the company’s financial risks.This study provides suggestions of financial risk control for enterprise management,thus effectively and quickly adjusting the financial risks within the controllable range,and improving the internal control level of the enterprises from the whole process of "before,during,and after the event".In addition,by conducting analysis and providing suggestions to typical H company in the real estate industry,the study can provide experience and guidance for the entire industry during the economic transition period. |
