Research On Early Warning Of Financial Risk Of Zhuye Group Based On Entropy Value Method And Efficiency Coefficient Method

With the continuous downward trend of economic growth,the problem of structural overcapacity has become increasingly prominent,and the non-ferrous metal market has gradually become sluggish.To this end,the macro policies frequently issued by the state have brought opportunities for non-ferrous metal enterprises while also great challenge.Faced with severe industrial environment and fierce market competition,non-ferrous metal companies are in a difficult situation and face huge financial risks.If they are not identified,controlled and prevented in time,the financial situation is likely to deteriorate and become a financial crisis or even bankruptcy.Therefore,it is necessary to establish a financial risk early warning mechanism to help enterprise managers grasp the company's financial situation in real time,and take timely measures to deal with possible financial risks and promote the steady development of the enterprise.Zhuye Group is a listed company in the non-ferrous metal industry.Under the circumstances of the industry downturn,it had suffered losses for two consecutive years in 2011 and 2012.It was implemented a delisting risk warning.After the company's stock was successfully resumed in 2014,its financial status Still unstable.This paper takes Zhuye Group as the research object.It first sorts out and summarizes the domestic and foreign literatures on financial risk early warning research to form the research ideas of this paper,and then explains the financial risk early warning theory,entropy value method and efficiency coefficient method,and determines the basic theory and tools for writing this paper.Next,analyze the financial status and early warning status of Zhuye Group,and propose the necessity of establishing Zhuye Group's financial risk early warning system.On this basis,using entropy value method combined and Pearson correlation coefficient method to determine Zhuye Group's financial risk early warning Indicators,using the efficacy coefficient method and the "Standard Value of Enterprise Performance Evaluation" issued by the SASAC,from the four dimensions of profitability,operating ability,debt repayment ability,and development ability,construct a financial risk early warning model of Zhuye Group.After the effectiveness analysis and verification of this model,it is applied to the financial risk early warning of Zhuye Group.The early warning results showed that the risk assessment grades of Zhuye Group from 2013 to 2018 were "light alarm stage ","medium alarm stage ","medium alarm stage ","light alarm stage ","medium alarm stage " and "medium alarm stage ",which indicated that the current financial risk status of the company was not ideal and should be paid enough attention by the management.Finally,based on the above analysis,the financial risk prevention countermeasures for Zhuye Group are proposed.