Analysis Of Financial Statement of Chinese Real Estate Enterprises-Take One Certain Company as An Example

Abstract

Real estate enterprises play an important role in the economic development of China, which are directly influence the economy. Different from other enterprises, real estate enterprises have the features of high leverage, large capital demand, slow repayment and long investment period. In recent years, the central government has implemented a series of policies, real estate enterprises facing severe financial risks. It’s important for enterprises to identify and prevent the financial risks. As a representative of China's highly leveraged and large-scale real estate enterprises, the company continuously violates the "three lines and four levels" policy when it is implemented. This article analyses the financial risks of this company by collecting the company’s financial statement data from the past five years, using ratio analysis and Z-value model. By researching the data, this article finds that the company has weak debt paying ability, operational ability, and profitability in recent years, also facing high financial risks.