The Financial Risk Assessment Of A Steel Company Based On The Method Of Efficiency Coefficient

With the rapid development of China’s national economy,market competition intensifying,the company is facing more and more risk,financial risk assessment are vital.Because once which was in financial crisis the company will suffer great economic losses,and even lead to bankruptcy or perish;Also the company’s financial situation is also subject to investors,Banks,government and other stakeholders pay close attention to.Iron and steel industry due to the rapid growth rate,the high cost of raw material price increases,financial factors makes the steel industry sustainable development is facing many risks.And steel industry is the mainstay of national economy development in our country,in the past few decades,the steel industry rapid development,drive the country’s infrastructure construction,promote the development of the industry.If the iron and steel industry into a financial crisis,the national economy will suffer the huge economic loss,therefore,in this paper,A steel company financial risk assessment research,to help the fast and effective evaluation of financial risk,has great practical significance.This paper first introduces the research background and research meaning,combing with the domestic and foreign financial risk assessment study related documents,and further analysis,defining the relevant concepts of financial risk;Secondly,from two aspects of financial and non-financial analyze the basic situation of the company.Among them,the financial aspects including financing activities,investing activities,operating activities three aspects;Non-financial aspects include several aspects,such as corporate governance and environmental governance,and screening of the relevant financial risk assessment indicators.On this basis,by means of the mentioned in this paper,the theory,combined with A steel company in the industry characteristics and their finances,using the entropy value method to determine the weight,use of efficacy coefficient method from the profit ability,operation ability,solvency,capacity development,corporate governance,environmental governance.and other aspects to build a set of financial risk evaluation system.Finally applied the system in A steel company financial risk assessment,and analyzed the results of evaluation,financial risk prevention advice is put forward.In this paper,by using entropy value method to evaluate the efficacy coefficient method to determine weights,and overcomes the subjective factors of enterprise financial risk assessment before the limitations;And environmental indicators into financial risk assessment system,a more accurate assessment of the enterprise financial situation comprehensively.In addition,this paper proposes the financial risk assessment system for A steel company financial risk assessment and has a certain guiding role for the prevention of financial risk.management activities for A steel company also provides certain scientific basis,make the enterprise timely control the risk,ensure enterprise healthy and steady development.