In the process of enterprise development, the probability of meeting financial risk is inversely proportional to the level of cash flow management, that is, the higher the level of cash flow management is, the smaller the financial risk the enterprise faces, because the active cash flow can avoid the financial crisis of the enterprise; on the contrary, the lower the level of cash flow management is, the more difficult the financial risk the enterprise faces, because there is not enough cash to meet it Urgent demand, it is easy to disconnect the capital chain, resulting in financial crisis. Therefore, in order to achieve better and faster development of enterprises, we must take scientific means to comprehensively evaluate and analyze the solvency of enterprises. In today's enterprises, the safety of financial situation is the basis and premise of maximizing shareholders' equity, and it is very important for the development of enterprises. This substantive condition requires that enterprises have strong solvency, especially the short-term liquidity assets must remain stable.
This paper takes the financial statements and relevant solvency indicators of Yunnan Urban Investment and Construction Co., Ltd. in 2013-2017 as samples, studies the solvency of Yunnan Urban Investment and Construction Co., Ltd., and analyzes the ratio, trend and structure of the company's solvency. Based on the knowledge of financial management, this paper systematically calculates the indexes that affect solvency. In the process of analysis, we can see the advantages and disadvantages of the debt paying ability, which plays a supporting role in the analysis of Yunnan city investment and Construction Co., Ltd. Finally, through the analysis of the financial situation of the enterprise, this paper finds out the relevant problems and puts forward constructive suggestions for the future development of the enterprise.
Key words: short term solvency; ratio analysis; trend analysis; Yunnan Urban Investment
