Research On Financial Risk Identification And Control Of W Company Under The Whole Industry Chain Business Model

China is a traditional agricultural and populous country,with a high demand for pork and feed.The market demand has greatly promoted the large-scale development of China’s animal husbandry.The feed industry in China has developed relatively mature,but the problem of homogenization is quite prominent.Many feed enterprises have chosen to break the existing business model and seek new business methods,such as the full industry chain business model that has emerged in recent years,which is based on a single feed business and extends the industrial chain to various links in the upstream,middle,and downstream.If a company ignores potential financial risks and fails to control risks in a timely manner during the process of integrating resources using the entire industry chain business model,it is likely to lead to financial difficulties for the company and further trigger a chain reaction of internal industry chain financial risks.Therefore,it is very important to deeply explore the financial risk control of enterprises under the full industry chain business model.After reviewing relevant literature,it was found that there is relatively little research on the financial risks of enterprises under the full industry chain business model.Therefore,choosing this topic has both theoretical and practical significance.This article takes W Company as the case study object to clarify the transmission mechanism of financial risks under the entire industry chain business model of W Company.Comparative analysis is used to identify the financial risks of the enterprise,and the "four stage symptom" analysis method and the "Z-Score model" are combined to qualitatively and quantitatively evaluate its financial risks.By comparing and analyzing the relevant financial risk data of the company in the past decade,it was found that the financial risk of W Company significantly increased after implementing the full industry chain business model.In terms of financing risk,there are risks of the company’s debt scale increasing year by year,debt structure imbalance,and debt repayment ability decreasing;In terms of investment risks,there are risks of increasing the scale of enterprise asset investment,unstable investment returns,negative net cash flows generated from investment activities,and insufficient profitability;In terms of fund recovery risk,there is a risk of a decrease in the level of enterprise asset recovery and a decrease in asset turnover capacity.Using the "four stage symptom" analysis to legally evaluate the financial risk of Company W,it was found that Company W is in a period of financial risk outbreak.By quantitatively measuring the overall financial risk of a company using the Z-Score model,it was found that the overall financial risk level of the company has been increasing year by year and faced financial crises in 2018 and 2021.In response to the financial risks that W Company faces in the layout of the entire industry chain business model,this article proposes to innovate financing methods in controlling financing risks,thereby expanding the financing channels of the enterprise,further adjusting the debt structure of the enterprise,and optimizing the debt ratio;In terms of controlling investment risks,it is necessary to plan investment plans reasonably,balance the industrial structure of enterprise development,and set reasonable target values to improve project returns;In terms of controlling the risk of fund recovery,it is recommended to improve the credit standards for credit sales,accelerate the recovery of enterprise loans,and accelerate asset turnover,thereby enhancing the business ability of the enterprise.This article takes the entire industry chain business model as the starting point,combines the "four stage symptom" analysis method with the "Z-Score model" qualitative and quantitative analysis,explores the financial risks faced by W company,and puts forward reasonable suggestions for risk control,which helps enterprises identify financial risks in a timely manner in practice and ensure stable development of the enterprise,I hope to provide some reference for enterprises in the same industry to address the financial risks arising from the entire industry chain business model operation.