Research On Financial Risk Evaluation And Preventive Measures Of Long-term Rental Apartments Based On Entropy Weight Topsis Method

With the continuous acceleration of urbanization process,a large number of migrants are pouring into cities to find jobs,and the cost of housing in big cities is also rising.In the context of high housing prices and changes in consumption concepts,young people’s housing demand has gradually shifted from buying to renting.With the help of the "renting and owning has equal rights",the long-term rental apartment industry has begun to grow rapidly,and various operators have sprung up.Due to the chaotic market order and lack of regulatory systems,the potential financial risks of long-term rental apartments with immature profit models have been exposed under the break out of COVID-19,and even the biggest operators’ s cash flow was ruptured,resulting in a large number of tenants being driven out by landlords,lead to a bad social impact.At the same time,the relevant research rarely pays attention to the financial risk performance of long-term rental apartments under this situation.Therefore,it is urgent to figure out the financial risks performances of long-term rental apartments in this circumstance.Theoretically,studying the causes of financial risks of long-term rental apartments can enrich the research on financial risks of long-term rental apartments.In practical application,paying attention to the causes of financial risks and preventive measures of decentralized long-term rental apartments can provide references for other companies with similar operating models,and also help the practical application of financial risk management theory in the long-term rental apartment industry.In this paper,Qingke Apartment is selected as the research object among many decentralized long-term rental apartment operators,which has a high degree of financial information disclosure.As one of the industry leaders,the broke on capital chain of Qingke is typical.Firstly,summarized the deficiencies in the current research on long-term rental apartment and financial risk by sorting out relevant domestic and foreign research.After viewing evaluation method research,selected entropy weight TOPSIS method as the research method.Then,from the perspective of capital circulation,selected 12 financial indicators from four types of risks: financing,capital recovery,investment and cash flow.And established a quantitative model to evaluate and analyze financial risks.The results shows that the financial risk of Qingke deserves continuous attention.Capital recovery risk and cash flow risk are the most important,among 12 indicators,the most important one is fixed asset turnover ratio.Coupled with the low level of cash management,Qingke can not cope with the break out of COVID-19,resulting in a break in capital chain.Finally,made a suggestion on how to prevent financial risks and improve financial status of Qingke based on the evaluation results,including reducing short-term liabilities,pre-lease preparation time and strengthening cost control.