Research On Financial Risk Early Warning Of KL Chemical Industry Based On Efficiency Coefficient Metho

In today’s globalized and market-oriented economy,enterprises encounter many development opportunities in a complex and changing environment,while also facing huge risks and challenges.Among various risks,the most far-reaching impact on enterprises is financial risk,and minimizing the possibility of its occurrence is the basis for smooth operation and sustainable development.The establishment of a financial risk early warning system that can reflect the actual situation of the enterprise in a timely manner can enable evaluators and decision makers to discover financial risks in a timely manner and grasp them comprehensively so that effective measures can be formulated to avoid and prevent risks,thus enabling the long-term development of the enterprise.At present,China’s chemical manufacturing enterprises are facing the challenges of serious competition in the industry,backward technology level,raw material price fluctuations and the spread of the new crown pneumonia epidemic,etc.,which triggers the increasing financial risks faced by chemical manufacturing enterprises,and how to comprehensively prevent and control financial risks is an important issue faced by enterprises in this industry.The design of a financial risk warning system for enterprises can help identify financial risks in their daily operations,prevent them in a timely manner,and alert management to make decisions before they break out,which is important for promoting healthy and stable growth of enterprises.This thesis takes KL Chemical as the research object,and chooses the improved efficacy coefficient method to construct a financial risk early warning model to warn its financial risks,so that the company can detect and prevent financial risks in time and help its healthy and long-term development.Firstly,the research background,significance,literature review,and research content of the article are outlined;secondly,an overview of financial risk,financial risk early warning,common methods of early warning,and the theory of efficacy coefficient method and its improvement are given;thirdly,the basic situation of KL Chemical,existing financial risks,and the current status of early warning are analyzed;Fourthly,the construction of the financial risk early warning system using the improved efficacy coefficient method is the core of this thesis.By analyzing the four dimensions of profitability,operating capacity,solvency,and business growth capacity,the financial indicators that meet the actual situation of KL Chemical are selected and assigned with weights using the entropy value method,and a financial risk early warning model based on the improved efficacy coefficient method is established for KL Chemical;the fifth is the application and analysis of KL Chemical’s financial risk early warning system,which introduces the financial data of KL Chemical from 2016 to 2020 into the financial risk early warning system,evaluates the early warning level of the enterprise in the past five years,and on this basis analyzes the influencing factors of KL Chemical’s financial risk and proposes corresponding preventive measures.The sixth,a series of safeguards are proposed to ensure the proper implementation of the financial risk early warning system in KL Chemical;finally,the conclusion of the article and the shortcomings of the study are drawn.Through the study of KL Chemical’s financial risk early warning model system,it is hoped that the company will be able to identify the existing financial problems of the company as early as possible and be able to take effective precautions in time to minimize the losses of the company.It is also hoped that it can provide references for managers of similar enterprises and promote the development and growth of chemical manufacturing enterprises.