The Research About Financial Crisis Pre-warning Model Of Textile And Garment Enterprises

As market competition is so fierce, financial crises even corporate bankruptcies increase. Corporate bankruptcies will not only bring economic losses, but also affect the survival of creditors, investors and other stakeholders. In the present era, enterprises become increasingly closer, the crises of one corporate often lead to its affiliated companies in crisis, thus give rise to the chain reaction and the vicious circle which will seriously influence the overall macroeconomic environment, and which in turn, will exacerbate the crisis in business. Textile and garment industry is a kind of labor-intensive industry, if a large number of textile and garment enterprises are in crisis and bankrupt, it will inevitably lead to lots of workers laid-off and unemployed, which will affect the social stability and prosperity. Therefore, if we can find signs of enterprise crisis early and take appropriate measures to deal with, the company's capacity of risk resistance can be greatly improved, which is of great significance to either enhance the vitality of individual enterprises or improve the overall socio-economic environment.Firstly, this paper describes the research situation at home and abroad of financial crisis pre-warning and analyses the meaning of establishment of financial pre-warning system of textile and garment enterprises. At the same time, the general characteristics of textile and garment enterprises as well as potential internal and external risks are analyzed. On this basis, this paper establishes a multi-dimensional financial crisis pre-warning system based on the causes of crisis of textile and garment enterprises. The non-financial indicators are the cores to this system, which can give qualitative analysis to the potential crises. Then at the help of corporate financial statements and taking into account of indicators of enterprise performance evaluation, this paper selects indicators of financial crisis pre-warning of textile and garment enterprises and establishes the pre-warning indicators system of textile and garment enterprises. The AHP method is used to determine the weight of each pre-warning indicators, and a multi-variable model of financial crisis pre-warning of textile and garment enterprises is established. By use of the improved efficiency coefficient method, this paper determines the standard value of indicators of financial crisis pre-warning of textile and garment enterprises, and on the basis of which, the paper conducts quantitative analysis of the crisis. Finally, this paper carries the model established out to SanYou Group Co., Ltd. Jiangsu to make empirical analysis and verifies the validity of the model.