L Company Based On Z-score Model For Financial Early Warning Research

Today,the financial early warning methods and the models are continuously updated,more and more enterprises also pay attentions to the financial early warning,but in small private limited liability companies,some companies do not understand the roles of the financial early warning,although some companies could carry out financial early warning,only select and calculate several financial indicators,reflect the operating and financial conditions statically and singly,the accuracy of financial early warning is not high.Therefore,for small private limited liability companies,the mature Z-score model can effectively compensates for the deficiencies of the single or several financial indicators,which is more understandable,easy to operate and more predictable.This paper selects Z-score model connecting with four financial indicators of profit ability,debt paying ability,operation ability and development ability,comprehensively analyses L company operating and financial conditions from 2013 to 2015,and puts forward the implementations of financial early warning system based on Z-score model safeguards,are of great significances to help L company avoid financial risk.