The Meaning And Manifestation Of Enterprise Financial Crisis

Financial managers should track and monitor the financial operation of enterprises, establish an alarm system for financial crisis, identify financial crises early, and prevent or avoid possible failures. There are many reasons for the emergence of corporate financial crisis, not only the external conditions of enterprises will cause financial crisis, but also because of poor management in enterprises will lead to financial crisis. The form of corporate financial crisis usually has both external symptoms and financial symptoms. External symptoms are mainly manifested in the following aspects.

The deterioration of transaction records can not be understood as an extension or default in the repayment of loans. When the customer delays payment, the management department should pay attention to the following characteristics: the reason why the customer procrastinate or refuse to pay the loan is unreasonable, even if he is unreasonable in argument and delay in payment, and the customer has always made payment on time, and has not been justified for any reason. The Client acknowledges the financial difficulties and requests for an extension of payment. In this case, he should check and monitor the information characteristics of the past and present, and analyze whether the difference is considered to continue the business with the customer. After failing to make a promise for breach of contract, it is a dangerous signal for the responsible person not to make a written commitment to the payment after the breach of the contract. Obligor There is a legal dispute between creditors. legal means The demand for repayment of debts is enormous.

In the absence of strict financial budgets and management, a substantial increase in loans can only account for the low capital turnover or low profitability. Depending on affiliate transactions, such as a subsidiary's over reliance on the parent company, once the parent company considers the need of the strategy or the overall ROI, and feels that a subsidiary is no longer of original use value, it will immediately stop supporting the subsidiary. If a subsidiary is fully dependent on the help of the parent company in terms of sales, supply and even management and technology, the subsidiary will probably fail if it loses support.

For example, when a company purchases many other businesses in many places at the same time, it also involves many different fields, which may bankrupt the enterprises due to overburdened and reduced capacity. Expansion of an enterprise's new project or large-scale expansion of its original plant is a manifestation of expansion. Once the enterprise fails to carry out strict financial budgeting and management in the course of business development, it is likely that there will be insufficient circulating capital. Therefore, we should pay more attention to the behavior of buying large enterprises (or assets), and we should be able to find signs of bankruptcy through the appearance of prosperity.

　　 financial statements And the relevant information bulletin can not be submitted in time, and the delayed disclosure of financial information is generally a sign of poor financial position. But this is just a clue to the possibility of an enterprise's financial crisis, and it can't tell exactly whether there will be a financial crisis. If a company's financial information is always released in a timely manner or deliberately delayed, it at least indicates that it is not in good condition and sometimes there is a serious financial crisis. Such a company should not only analyze the accounting statements, but also pay attention to the annotations of accounting statements and the relevant insider situations, so as to prevent risks.

Financial symptoms are mainly manifested in financial indicators and statements. The main forms are: cash flow is insufficient, enterprises can not pay debts due in due time, sales are not normally down; cash has declined substantially and accounts receivable has increased substantially; some abnormal rates (such as total assets turnover, operating profit rate, asset liability ratio and liquidity ratio) have dropped significantly.