A Research On Financial Risk Evaluation And Control Of N Real Estate Company

The healthy and stable development of real estate enterprises is a great matter concerning people’s life,and is also one of the important factors for the steady and upward development of the whole national economy.The characteristics of real estate industry,such as long investment and development cycle,high debt leverage ratio and large operating cash demand,constitute complex financial risk problems of real estate enterprises.With the incurring financial risk of the real estate industry magnates,as well as the impact of the epidemic,the real estate industry risk situation is getting more and more attention.Therefore,people need timely and effective use of appropriate methods to evaluate the uncertain financial risks of real estate enterprises,in order to take appropriate preventive measures and control measures in the first time,so as to ensure the steady development of enterprises in the fierce industry competition.In this thesis,N company,which is representative in the real estate industry,is taken as an example.Firstly,univariate evaluation method is used to preliminarily identify the financial risk of N company.Secondly,this thesis refers to the evaluation of enterprise financial risk by experts and scholars,selects factor analysis method and entropy value method as the methods to evaluate the financial risk of N company,and builds a comprehensive evaluation system for the financial risk of N company.This thesis selects 11 index data of the company from 2016 to 2021,including asset-liability ratio and quick ratio after excluding receipted accounts,as research samples to carry out the research.The results of this thesis show that: N company has great risks in financing,investment and operation,the company’s comprehensive evaluation ranking is low,with great financial risks.Based on the study of N company’s operation,corporate strategy and other aspects,this thesis proposes targeted suggestions and measures to control and prevent N company’s financial risks.For example,N company should make full use of our own resource advantages to power the capital market,and increase the proportion of equity financing as appropriate,and actively use insurance funds for commercial real estate debt financing to broaden financing channels;N Company should change the strategy of rapid expansion into a slow strategic layout,adapt to the development trend of the industry,take the initiative to adjust the business model,supplement the “fast turnover”profitable projects,ensure the realization of the investment target of new land bank by various means,and improve the ability to cope with the change of macro environment;N company also should focus on “destocking,efficiency,cost reduction,weak areas and steady growth”,adhere to the general tone of seeking progress while maintaining stability,further improve operation efficiency and quality and benefit,strengthen internal and external inventory business revitalization work,promote the company’s commercial operation capacity,brand and talent team output,etc.In order to provide some reference for other real estate companies to solve similar problems.