Research On Financial Risk Early Warning Of CM Company Based On Efficacy Coefficient Method

Today,with the rapid development of the world economy,enterprises should not only face the increasing competition problems,but also need to pay attention to the problems of their internal financial management.Once the company has internal management problems,it will accelerate the deterioration of the financial situation of the enterprise if the enterprise can not timely and correctly respond to the changes in the market environment.Thus,how to reasonably and effectively warn and prevent financial risks in enterprises is becoming more and more important in enterprise management.Coal industry is an important energy resources industry of our country,and also an important pillar of the national economy.However,with the impact of the economic crisis,the development of the coal industry is limited,and the excess production capacity leads to the supply exceeding the demand in the domestic market.Coal prices continue to fall and coal enterprises' income has decreased significantly,which will lead to financial crisis.Therefore,the establishment of a financial risk early warning system for coal companies is even more urgent.As the largest coal enterprise in Sichuan Province,CM Industry Group Co.,Ltd.has many subsidiaries.Its economic development has attracted attention from all sides.Therefore,CM Company needs to establish a scientific and effective financial risk early warning system.Based on the previous analysis,this paper chooses CM Company as the study object.Starting from the economic environment faced by CM Company,this paper makes a detailed analysis of its financial situation.At the same time,this article will also combine the actual situation of CM Company to conduct in-depth research on the company's financial risks.Finally,a set of financial risk warning system based on efficacy coefficient method will be designed to help prevent financial risks.In the first part,the text will introduce the relevant theoretical background,general analysis of financial risks and financial risk early warning,and the main methods used in this article.In the second part,through introducing the overall financial situation and business development of CM Company,further analyzes the current situation of external and internal financial risk assessment of the enterprise.The third part,through the use of efficiency coefficient method,combined with the actual situation of CM Company,selected twelve important indicators from the four aspects,so as to design a financial risk early warning system and put forward corresponding financial risk prevention measures.This paper not only provides CM Company with a more effective financial management method,but also will provide reference for other coal enterprises in financial management.