Financial risk evaluation and control of JZ New Energy Company

Aicong  Liu; Jiayuan  Li; Siqi  Jiang; Shi  Yin

doi:10.59400/fefs2045

Aicong Liu College of Economics and Management, Hebei Agricultural University, Baoding 071001, China
Jiayuan Li College of Economics and Management, Hebei Agricultural University, Baoding 071001, China
Siqi Jiang College of Animal Science and Technology, Liaoning Vocational College, Tieling 112099, China
Shi Yin College of Economics and Management, Hebei Agricultural University, Baoding 071001, China

Article ID: 2045

DOI: https://doi.org/10.59400/fefs2045

Keywords: JZ New Energy; financial risk assessment; risk control; entropy TOPSIS method

Abstract

Under the background of “double carbon”, the new energy industry is developing rapidly and the economy is growing rapidly. At the same time of the rapid development of the new energy industry, the financial risks faced by it should not be ignored. In this paper, JZ New Energy Company is selected as a case study object, the financial risk of the enterprise is identified and evaluated, and control measures are proposed. The results of the study show that (1) JZ New Energy has financial risks in 2018–2022, with the highest risk in 2020 and the lowest risk in 2021. (2) JZ New Energy has certain risks of financing, investment, operation and income distribution. (3) In order to reduce the financial risk, it should expand financing channels and optimise the capital structure; regularly prepare cash budgets, reasonably retain earnings and profit distribution; improve the talent management system and actively respond to changes in the external environment. By identifying the financial risks of JZ New Energy, we can make a comprehensive evaluation of the risks of JZ New Energy, and then put forward financial risk control measures for JZ New Energy.

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