Vanke Co., Ltd. Financial Risk Analysis and Countermeasures

Abstract

In recent years, the government has continuously strengthened its control policies on the real estate market, which has brought great pressure on housing transactions. Under this background, it is very important to conduct financial risk analysis. This paper takes Vanke Co., Ltd. as the research object, selects its financial data from 2016 to 2019, analyzes its debt repayment risk, operating risk and profit risk, and on this basis interprets the reasons. Finally, it puts forward the conclusion of preventing risks: optimizing debt, improving debt solvency, diversifying operations, expanding financing structure, etc.

The Existing Crisis of China's Large Real Estate Enterprises and Corresponding Amelioration Strategies Based on Evergrande and Vanke

“…They analyzed and evaluated Vanke's debt-paying risk, operating risk, and profit risk and then explained the reasons for these risks. Finally, they put forward the methods and conclusions to prevent these financial risks [2]. Given the financing difficulties of real estate enterprises in recent years, Guo et al took Vanke as an example to analyze its current financing problems.…”