Research On The Financial Early-Warning Of Kelun Pharmaceutical Corporation Based On The Entropy Weight Theory

China's pharmaceutical industry is in a high-speed development stage,at the same time,it is also faced with many challenges,which makes the "high input,high risk" pharmaceutical companies need to pay more attention to their own risks.This dissertation conducts the research on financial early-warning of KELUN Pharmaceutical Corporation,setting up a financial early-warning model,to achieve the purpose of risk management.It is of great significance of sustained and healthy development of the KELUN Pharmaceutical Corporation.This dissertation analyzes the related literatures on financial early-warning of domestic and foreign enterprises,and summarizes the research results of some relevant scholars.And then analysis the financial risk formation process as well as KELUN's status quo,finding that the KELUN Pharmaceutical Corporation is greatly influenced by industry factors.Coupled with its enormous debt pressure,it is necessary to establish a financial early-warning model for financial risk management for the KELUN Pharmaceutical Corporation.The analysis of common model shows that only the multi-index comprehensive early-warning model is suitable for the KELUN Pharmaceutical Corporation.The key to using multi-index model effectively is to empower the indicators.Through using the analytic hierarchy process(AHP)by case presentation to empower the early warning indicators,there are two groups of experts respectively empower,finding that results are different.Therefore,the traditional subjective methods ha ve a great impact on the accuracy of the risk warning results.This dissertation creatively introduces the entropy theory for determining the weight of index,especially for its superiority in objective empowerment.Simultaneously,from the perspective of cash flow,a comprehensive early-warning model of entropy weight theory for the KELUN Pharmaceutical Corporation has finally established,discarding the lag of traditional financial early-warning indicators in reflecting risk.According to the financial data of pharmaceutical industry,this dissertation using the systematic methods to calculate the threshold of police and no police to determine the degree of alert.Through the analysis of early-warning results,KELUN's actual situation and the risk which shows by the entropy theory financial risk model based on the cash flow is basically the same.At the same time,the financial risk model could provide comparative and quantitative early-warning coefficient,to provide separately early-warning for the Corporation's different abilities,which provides important references for K ELUN's financial risk management.