Research On Financial Risk Management Of X Corporation Based On Factor Analysis

Real estate enterprises are the pillar industry of China’s economic development and the lifeblood of the national economy.At present,with the introduction of China’s real estate regulation policy,real estate enterprises in a complex environment,coupled with the original fierce competition in the market,so it is facing more severe challenges.In recent years,the "Thunderstorm" events of real estate enterprises occur frequently.The real estate industry is a capital intensive enterprise,which has always been risk-oriented.However,too high risk will hinder the pace of enterprise development,and may even face financial crisis and bankruptcy.Therefore,the financial risks existing in all links of enterprises should be paid attention to.Especially in the increasingly severe economic situation,how to effectively manage financial risk is very important.This paper takes X corporation as the research object.Firstly,it introduces the research background,purpose and significance of this paper.Secondly,it expounds the concept and nature of financial risk,introduces the process of financial risk management and the methods used in each process,especially the principle and steps of factor analysis.Thirdly,through the vertical and horizontal comparison of the financial data and financial indicators of corporation X from 2016 to 2020,the financial risks of corporation X are identified from the five perspectives of profitability,debt repayment,operation,growth and cash flow.The risk identification shows that the operating cost of corporation X is too high,the sales profit decreases,the asset liability ratio is too high,the debt structure needs to be optimized,and the cash outflow increases.Then,combined with the actual situation of enterprise X,this paper selects 20 indicators contained in the five aspects of profitability,solvency,operation ability,growth ability and cash flow of corporation X,and constructs the financial risk evaluation index system.Through the pretreatment of original data,the applicability test of factor analysis method,factor extraction,factor rotation The financial risk status of X corporation is evaluated through the steps of factor naming and factor score.Through the financial risk evaluation,we know that the biggest impact of financial risk is followed by debt repayment risk and cash flow risk.These risks need to be paid attention to by the management and financial risk control measures need to be implemented.The operational risk,profit risk,and growth risk are relatively small.Finally,according to the specific situation of X corporation financial risk,this paper puts forward the corresponding control measures.It is suggested to control the repayment risk by reasonably allocating funds to repay debts,optimizing the capital structure of enterprises,ensuring that enterprises can borrow scientifically and reasonably,and have sufficient funds to repay due debts;Take measures to strengthen cash flow management and scientifically select development projects to control cash flow risk,and control profit risk by paying attention to costs and expanding sales channels;Control operational risk by improving inventory liquidity.It is hoped that the above suggestions can not only provide reference for promoting the healthy development of X corporation,but also play a certain practical significance for other real estate enterprises to prevent and control financial risks and improve the anti risk ability of enterprises.