Research On The Analysis And Prevention Of Financial Risks Of L Foodstuff Company

The food industry in China has developed rapidly and the standard of living of the people has been continuously improved,thanks to the significant role of the market economy and technological development.As food production is a matter of national importance and involves thousands of households,the relevant state departments are also paying increasing attention to food safety.At the same time,the expansion of the international market has provided significant development opportunities for China’s food companies,but also brought more business risks.With the increasingly complex market environment,the intensifying competition in the industry and the impact of the swine fever and the new crown epidemic in recent years,the production and operation of companies have gradually become more difficult and the financial risks of food companies have increased.If the company itself has an imperfect operation and an unreasonable capital structure,it will certainly bring financial risks to the company,which will in turn have a negative impact on the sustainable development of the company.Therefore,the study of the financial risk analysis and prevention of L Foodstuff Company has more significant theoretical and practical significance.This thesis is divided into five areas of research.Firstly,it explains the purpose and significance of this paper,examines the relevant literature on the analysis and prevention of financial risks at home and abroad,and identifies the research content and methodology to lay the foundation for the subsequent research.Secondly,the concepts and theoretical foundations related to financial risk are explained to provide theoretical support for the subsequent analysis.Once again,L Foodstuff Company,a meat processing company,was selected as the research object,and the basic situation and main business of the company were introduced.Based on the actual situation of L Foodstuff Company at this stage and the financial report data of the past five years,the financial index analysis method was applied to evaluate the financing,investment,operation and cash flow of L Foodstuff Company.It also selected suitable financial risk evaluation indicators to assess L Foodstuff Company’s financial risk,and then used the F-score model to conduct a comprehensive and integrated evaluation of L Foodstuff Company and derived the evaluation results,and explored the causes of financial risk from four aspects.Finally,the prevention of financing risk,investment risk,operational risk and cash flow risk is studied in depth.It provides a reference for promoting the sustainable development of L Foodstuff Company,and provides a reference for the healthy development and financial risk management of other food industry enterprises.