Research On Financial Risk Control Of Real Estate Enterprises In My Country Under High Leverage Effec

In recent years,the real estate industry has made great contributions to China’s economic development.Now China has entered the new normal of the economy,and the development speed of the real estate industry has slowed down accordingly.Real estate enterprises are highly capital-intensive and highly asset-liability industries.As the investment and development of real estate rely on huge amounts of capital,the real estate industry is highly dependent on financial leverage.Although the highly leveraged operation provides the leverage income for the growth and development of the real estate industry,it also increases the financial pressure of the company.High financial leverage is an important problem facing the real estate industry,which not only affects the development of the real estate industry,but also affects the development of the entire financial industry.The negative effect of high leverage on real estate enterprises makes the profitability and cash flow of the company continuously decline.Therefore,On the basis of the supply-side reform of "three cuts,one reduction and one complement",President Xi Jinping aims to solve the three major problems of large real estate inventory,high debt and excess capacity.How to solve the negative effect of high financial leverage of real estate companies and how to reduce leverage has become the key problem to be solved in the development of real estate companies.This paper takes Zhongnan Construction Group,a real estate enterprise,as the research object and closely focuses on the actual situation of Zhongnan Construction.First of all,it introduces the industry background of Zhongnan Construction,a real estate enterprise,and combs the achievements made by domestic and foreign scholars on financial leverage and financial risk in recent years.By sorting out and comparing the financial data of Zhongnan Construction from 2011 to 2020,the present situation of capital structure and financing channels of Zhongnan Construction is analyzed.Second,by means of Zhongnan construction positive and negative effects of financial leverage is analyzed,which is effect from the interest tax effect and high income effect two aspects analysis,negative effects from the interest-bearing debt ratio is high,the great changes in earnings before interest and tax rate,reduced return on assets and earnings per share range analysis of four aspects,It also analyzes the financial risks associated with the effect of high financial leverage,and finds that Zhongnan Construction currently has financial risks such as increasing debt overdue risk,stepping on the three red lines of supervision,and cash flow beyond revenue.Thirdly,it evaluates the financial risk of Zhongnan Construction from two aspects of financial leverage coefficient and financial warning Z-value model,and analyzes the causes of the financial risk of Zhongnan construction from five aspects of unreasonable capital structure,serious inventory,weak awareness of financial risk,unstable industry development,and the intensification of irregular competition.Finally,based on the causes of financial risks,suggestions are given for Zhongnan Construction to reduce risks,and conclusions are drawn by studying the effects of financial leverage and the accompanying financial risks,aiming to provide references for other real estate enterprises to reasonably use financial leverage and reduce the negative effects of financial leverage.