A Research Of The Financial Pre-warning Of XC Company Based On The Efficiency Coefficient Method

The market economic environment is so changeable that the company has to face both opportunities for development and many risks during the the process of development.In the case of the overall financial safety level of Chinese enterprises is decreasing,Chinese food manufacturing enterprises are facing many challenges such as the food manufacturing products' serious competition of homogeneity,the backwardness of manufacturing technology and the influx of many foreign capital giants.The food manufacturing enterprises have to bear the risk of bankruptcy because they ignore financial risks.This paper takes the XC company as an example on the basis of the financial pre-warning system.Under the huge pressure of the market competition,the company's financial situation and management is very poor.It is urgent to identify and resolve financial risks by establishing financial warning models.The content of this paper is as follows.First of all,The efficiency coefficient method has the best advantage to construct financial warning model after collecting and comparing the financial warning methods by reading a large number of domestic and foreign literatures on financial warning.Secondly,it is concluded that it is necessary for XC company to construct a financial warning model through the analysis of the external environment,current management status and financial indicators of XC company.Thirdly,we use correlation analysis to select the financial warning index system of XC company,use the improved efficiency coefficient method to establish a model,and apply the company's real financial data from 2013 to 2015 to verify the applicability of the model.Then the model was applied to the XC company in 2016.The result is that the financial state will be in moderate warning,and the non-financial indicators are introduced to assist the analysis.Finally,by analyzing the results of financial pre-warning model from the four aspects of profitability,operational ability,debt repayment ability and development ability,We combed out the risk points that caused the current financial situation and put forward measures to prevent financial risks so as to contribute to the healthy and sustainable development of the company.