The Study Of Financial Risk Early Warning Method Based On Efficacy Coefficient Method

With the development of complex economic environment, corporate financial risk attendant to become an extremely important business development focus. Although the sources of risk of the company is not limited to the financial aspect, but mostly a source of business failure began from the weak financial risk control. While its financial risk early warning process tracking and control through the collection of corporate financial operations activities related to data, using analysis model to identify factors that may have an early awareness of financial crisis, it was found during the operation, or may have problems in the financial and business crisis level effectively predict, so that business managers can take timely appropriate and effective measures to against potential financial crises and avoid or minimize financial risk management in order to improve business conditions to improve the quality of management.Based on the current situation that differences between the different sectors of the industry is even more obvious, the original universal system of early warning indicators and early warning models have been unable to meet the company’s own needs. Thus, in this paper, first by summarizing the domestic and foreign ariticle of corporate financial risk warning as well as the feasibility of the efficiency coefficient method in financial risk early warning and the need to improve the analysis of the problem, according to their better operational and specific characteristics than more traditional models to select this method applied to the analysis of financial risk warning herein. Secondly, select the first listed company of network video communication services industry-Letv as an example, by improving the reference value, and comprehensive evaluation score of the efficacy coefficient method and introducting the non-financial indicators evaluation system, construct its financial risk warning indicator system and early warning model is applicable, while validating the model. Then, using the model has been constructed on the financial risk of Letv and doing horizontal and vertical specific analysis. Based on results of the analysis, this ariticle identifies the Letv’s financial risk increased year by year, and has found that the impact of non-financial indicators can not be ignored in the corporate financial risk early warning. Ultimately, combined with its various aspects and the overall risk condition gives the corresponding risk prevention measures.