An Empirical Research On Financial Early-Warning For A-share Listed IT Companies In China

With the economic development of our country, there are more and more challenges and threats to the enterprises, while more opportunities also provide to them. However, none of them is the worst, and the most vital weapon for success is that does the correct decisions, establishes the healthy system, makes the perfect management and puts the right employee in the right job. Therefore, finding the question and making the right solution is essential to the enterprises. And then building the correct Financial Early-warning system and analyzing the potential problems based on the financial information are the urgent affairs.In this paper, the listed Information Technology enterprises are the learning objects. Through do the analysis of financial indexes both the traditional ones and the adjusted ones. At last establish the Financial Early-warning model, and do some proof-test to be sure the validity of that model while use it to do the feedback.Following conclusions I got from this research: firstly, there are the notable differences between the ST enterprises and the profit ones. Secondly, before the special treat, financial statuses of the enterprises take on the sliding trend which is the diversity with the profit ones. Thirdly, the following financial indexes are excellent for judging the status of the enterprises: Interest Protection Multiples, Turnover of Accounting Receivable, Turnover of Inventories, Turnover of Working Capital, Turnover of Total Assets, Rate of Return on Assets, Cash Flow to Current Liabilities, Adjusted Return on Assets, Asset-to-Equity Ratio. Fourthly, the adjusted financial indexes based on EVA bring the outstanding functions, and reflect the actual financial status of the enterprises. At the same time they also have the important actions on remind of the risk. Finally, the Financial Early-warning model also would be operated in the new accounting guide line.Base on the research results, there are the following suggestions to the Information Technology enterprises: firstly, enhance the implement of building the financial early-warning system for the listed companies. Secondly, encourage the private companies to set up their own systems. Thirdly, improve the crisis warning consciousness for the information demanded. Fourthly, intensify the management of the indexes about cash flow. Fifthly, analyze the truth profits based on EVA.