The Analysis Of Financial Distress Prediction In The Process Of Business Model Revolution

With the continuous development and improvement of China's capital market,the competition among enterprises is increasingly fierce. Lots of companies enter the market every year,while lots of companies are eliminated from the market at the same time. As'Survival of the fittest' competition mechanism accelerates the pace of business evolution,business model evolution becomes one of the mainstream trend. The aim of business model evolution is to enhance profitability and competitiveness in the market, but the adjustment of business model might bring a converse effect to the enterprises, which are originally generate quite well, and even lead to bankruptcy. Therefore, this paper is intended to predict the probability that a company involved in financial distress during the process of business model evolution.Financial distress is an important part of the theory in corporate finance.A company,which has exited the market, generally experienced financial difficulties. Analyzing the financial position reflects the overall state of the company. Therefore, the study of financial distress of companies has become a hot topic of scholars and entrepreneurs. This article will focus on the analysis of the financial distress prediction model, using the financial data of SuNing as a typical case.