Financial Risk Early Warning Research Based On Efficiency Coefficient Method

At present,our country is developing rapidly.People's material life level changes and improves a lot.In the retail industry which is closely related to people's life is faced with many challenges.The retail industry is inevitably in a period of significant development and revolution.In the process of revolution,we should actively face the environment of the market,find the right direction of the development of enterprises,seek development opportunities.On the other hand,we should improve the level of financial risk management of enterprises at the same time,so that the company can develop rapidly.So how to improve the level of the corporate financial early warning is a question that scholars are keen to study.From the latest research literature,the efficacy coefficient method is increasingly applied to corporate financial risk early warning.Need to evaluate the efficacy coefficient method is known to all kinds of index of the standard under the premise of specific to each weight coefficient of index allocation conforms to the enterprise actual situation,using the principle of efficacy coefficient method to run again to scores of the indicators,the indicators to make measurable characteristics,finally the score to the various index weighted average to get in the analysis of the overall evaluation of the object.The method of efficacy coefficient method is simple and easy to understand,and the result is based on the actual situation of the enterprise,which guarantees objectivity.This paper studies the financial situation of the local company X in Nanjing.First of all,from the analysis of the basic method of each main financial indicators alone sorting and analyzing the data,content involves the change of financial index of enterprises from 2011 to 2015,thus makes the basic judgment of enterprise financial risk;Second,the article analyzes the financial risks inside and outside the enterprise.Internal risk mainly includes funding risk,capital turnover risk,liquidity risk,using the longitudinal X company annual time series of data,analysis the changes of the relevant indicators.The external risk factors are analyzed from the perspective of macroeconomics and industry conditions,and the environment and development opportunities of X enterprises are forecast.Then,the analysis framework of the efficacy coefficient method is used,this article from the profitability,solvency and development ability and the ability of the operation,using Pearson correlation coefficient,further screening effective financial indicators.Refer to the state-owned assets supervision and administration of 06 years issued "interim measures for the central enterprise integrated performance evaluation management",only two of the original tradition of efficacy coefficient method is improved,is divided into five grades to define the index evaluation system.The company has made accurate,detailed and comprehensive evaluation of financial indicators.The results of the study found that the effectiveness coefficient method was basically the same as the direct financial indicator analysis,which determined that the warning level of the company was light alert in 2015.Finally,the article gives the policy advice.For example,perfect the enterprise financial risk management process,the reasonable debt structure,strengthen the accounts receivable risk management,and strengthen the cost control and so on.