Financial Risk Analysis of Metro Land Corporate Ltd. under High Turnover Mode
Download as PDF
Metro Land Corporate Ltd. is the first company which builds up TOD model in China. In the high turnover mode, the Metro Land Corporate Ltd. has certain financial risks, such as credit risk, liquidity risk, investment risk, etc. The reasons for the financial risk of Metro Land Corporate Ltd. include the decrease of sales volume and the shortage of working capital caused by land acquisition, the difficult recovery of accounts receivable caused by the company's low bargaining position in the industry and the insufficient internal cash flow caused by the poor liquidity of current assets. The countermeasures reducing the financial risk of Metro Land Corporate Ltd. under the high turnover mode include reasonable control of sales volume and land acquisition scale to improve working capital. It enhances the company's bargaining position in the industry, promotes the recovery of accounts receivable, and enriches the liquidity of current assets. It also promotes the abundance of internal cash flow. Moreover, it sets up scientific investment strategies to ensure the timely recovery of investment cash flow.
Metro land corporate ltd, High turnover, Financial risk, Transit-oriented-development