Study On The Financial Risk Early Warning Of BH Company Based On Capital Circulation

From the date of the birth of enterprise,the risk engenders accompanying with it,runs through the entire process of the enterprise’s production and operation,and erupts after it has accumulated to a certain extent.If the corporate managers can detect financial abnormalities or bad conditions in time before the outbreak of financial risks,they can discover hidden risks of the enterprise’s potential financial risks in advance and help enterprises develop in a healthy and orderly manner in a good direction.With the increasing development of economic globalization,the process of China’s market economy is also constantly deepening.While obtaining relatively more development opportunities,various types of competition among enterprises have increasingly trended to turn white-hot,the risks they faced have also increased,and automobile manufacturing enterprises as a key component of manufacturing are no exception.This requires timely and effective early warning of the enterprise’s financial risks.This article takes the automobile manufacturing enterprise BH Company as the research object,constructs a corresponding set of financial risk early warning index system aimed at the possible financial risks in the enterprise and puts it into practice.This article first summarizes the related theory of corporate financial risk early warning;then divides financial risk into four categories of financing risk,and according to the actual situation and industry characteristics of BH Company,it filters out the warning indexes to construct the financial risk early warning index system of BH Company;The next,the article uses AHP to assign weights to the indicators,and uses the efficiency coefficient method to evaluate the financial risk for the 2014-2016 three years,predicts the possibility of future financial risks to the company based on the above results.Finally,the article proposes countermeasures and suggestions for strengthening the company’s financial risk early warning from the system level and development level according to the result of the financial risk early warning.Through the establishment of financial risk early warning index system,the paper can help BH Company to use their financial data and other relevant business data to identify their potential financial risks in advance and take necessary measures in a timely manner,this is inevitable requirements which is to achieve sustainable development of the company and improve company risk resistance capabilities and core competitiveness.