Research on Financial Risk Management of Wen's Enterprise Based on Factor Analysis Method

This study aims to improve the financial risk management level of listed livestock enterprises and selects Wen’s Group as the research object to assess its financial risk in four aspects: growth, profitability, operation, and debt repayment. The publicly disclosed data for the first quarter of 2017–2023 are analyzed by factor analysis, and the following conclusions are drawn: (1) From 2017 to 2020, the company’s financial composite score is basically stable but stays at a low level; (2) Wen’s enterprises have multidimensional problems in terms of growth, profitability, operation, and debt repayment; (3) it is recommended to improve the management of accounts receivable and inventories, increase the liquidity of assets, optimize asset utilization, and develop effective growth strategies. It is critical to conduct regular financial health checks to address issues and improve financial performance in a timely manner. In order to achieve transformation and upgrading, strengthen disease prevention and control, improve cooperative relationships with farmers, diversify investment risks, avoid policy risks, improve efficiency, and cope with emergencies, Wenzhou enterprises need to take effective measures.

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Publication Details

Journal
IETI Transactions on Data Analysis and Forecasting (iTDAF)
Published
2025-01-10
DOI
https://doi.org/10.3991/itdaf.v2i4.51945
Primary Topic
Evaluation and Optimization Models
Type
article
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Research on Financial Risk Management of Wen's Enterprise Based on Factor Analysis Method

Yongliang Zhang, Zhijia Gu, Jiaxian Chen, Sixi Peng
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IETI Transactions on Data Analysis and Forecasting (iTDAF)
Evaluation and Optimization Models
article

Research on Financial Risk Management of Wen's Enterprise Based on Factor Analysis Method

Yongliang Zhang, Zhijia Gu, Jiaxian Chen, Sixi Peng
article en

Abstract

This study aims to improve the financial risk management level of listed livestock enterprises and selects Wen’s Group as the research object to assess its financial risk in four aspects: growth, profitability, operation, and debt repayment. The publicly disclosed data for the first quarter of 2017–2023 are analyzed by factor analysis, and the following conclusions are drawn: (1) From 2017 to 2020, the company’s financial composite score is basically stable but stays at a low level; (2) Wen’s enterprises have multidimensional problems in terms of growth, profitability, operation, and debt repayment; (3) it is recommended to improve the management of accounts receivable and inventories, increase the liquidity of assets, optimize asset utilization, and develop effective growth strategies. It is critical to conduct regular financial health checks to address issues and improve financial performance in a timely manner. In order to achieve transformation and upgrading, strengthen disease prevention and control, improve cooperative relationships with farmers, diversify investment risks, avoid policy risks, improve efficiency, and cope with emergencies, Wenzhou enterprises need to take effective measures.

IETI Transactions on Data Analysis and Forecasting (iTDAF)Vol. 2(4)
South China Agricultural University (CN), Meizhou City People's Hospital (CN)
Partnerships for the goals
Openalex Percentile: Top 99%
Evaluation and Optimization Models
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