Research On Enterprise Financial Early-warning System

The enterprise's target includes existence,development and profit,among which existence is the most important;enterprise management includes successful management and early-warning management,but early-warning management is more important. Owing to financial index's character:forecast,synthesis and evaluation,financial early-warning is the most important aspect of early-warning management. So how to establish an effective enterprise financial early-warning system is the urgent assignment of our present business circle.In view of enterprise early-warning theory and macro-economical early-warning method,the author makes an analysis of the cause which leads to the failure of enterprise and the symptom which manifests the crisis of enterprise,and attaches emphasis on how to set up some models which inspect the distress of enterprise. Firstly,the conception,function and present study situation of enterprise financial early-warning is introduced. Secondly,the principle,procedure and method of enterprise financial early-warning is elucidated. Thirdly,the short-term and long-term financial early-warning system is established based on the financial statements of Marketing Corporation in electric power,medicine and general merchandise. Systematic method,efficiency coefficient method and linear regression method are applied in the short-term financial early-warning system from the aspect of cash flow,operating performance and function model;growth periods method and management grade method are applied in the long-term financial early-warning system from the aspect of growing capability and financial stratagem. Finally,lots of examples are given to validate these early-warning models,and some countermeasures are discussed for avoiding and eliminating the distress of enterprise.