Financial Risk Assessment Of J Company Based On Efficacy Coefficient Method

With the continuous reform of the market system,our country is in the special stage of economic internationalization,and the enterprises are facing an unprecedented period of rapid development.The development of the enterprise is also facing the inevitable financial risk.If the enterprise can not face up to their financial situation,do not attach importance to financial risks,it is likely to lead to serious financial crisis,once the risk of the breaks out,the enterprise will fall into the edge of collapse.In recent years,the world economy is in a rare downturn,and large fluctuations,coupled with the domestic two rounds of tightening of macroeconomic policies,a severe economic downturn,China’s export-oriented manufacturing textile industry suffered a major blow.Textile enterprises are the main products of the procurement of chemical fiber industry,the external economic environment and the raw material price volatility is an important factor affecting the chemical fiber industry,on this special stage,the entire chemical industry is in the rare recession,some enterprises there are a performance of landslide,lack of profitability,and some companies even greatly suffer loss.From this point of view,the enterprise financial risk assessment is still an important issue in the financial field,and chemical fiber industry as a pillar industry of the national economy should also be concerned.This thesis discusses the financial risk,starting from the relevant concepts of enterprise financial risk and theoretical basis,summarizes the relevant literature,compares various methods of financial risk evaluation,and analyzes its advantages and disadvantages.Based on the financial data of J Chemical Company from 2011 to 2015,this thesis combines the chemical industry’s industry characteristics to conduct risk identification from financing,investment,capital operation and income distribution from four aspects.And 12 indicators are screened from four aspects of profitability,solvency,operation ability and development ability.In addition,the thesis uses AHP to determine the weight,combines with the efficacy coefficient method,and establish a risk assessment system.After evaluating the financial situation of J company,it finds that the company has a large financial risk.With analyzing its causes,the thesis finally puts forward the corresponding control suggestions.This thesis can provide some reference to control the financial risk of J company,and help enterprises to strengthen their awareness of their own risk.Meanwhile,due to the importance of risk,improve the anti-risk level,the theory and method guidance will be provided to improve the anti-risk level as well as benefiting the chemical fiber enterprise.