A Case Study On Financial Risk Assessment For ZB Company Based On Efficacy Coefficient Method

In the course of business development,due to the complexity and the mechanism of the internal and external environment,the development of enterprises faces many risks.Among them,financial risk is the most common and most significant type of risk.Financial risks can easily induce financial crises,causing companies to be caught in operating difficulties or even bankruptcy.Therefore,a reasonable assessment of the financial risks faced by the company and the timely submission of financial risk control measures have become just what companies need.At present,China's national economy is in a period of new normal economic conditions.The overall growth rate of the economy is declining but it contains many stages of opportunities.The traditional retail industry,especially the large-scale wholesale and retail industry,as an important component of the national economy,faces even greater risks and challenges than ever before.As an enduring research hotspot in the financial field,corporate financial risk assessment has a very significant practical significance in combination with the traditional retail industry.This paper takes the theoretical basis of financial risk assessment and related research as the starting point,and focuses on the comparative analysis of two types of evaluation methods: quantitative assessment of financial risks and quantitative assessment of financial risks,summarizing and analyzing their suitability and inadequacy,and finally selecting the efficacy coefficient method.As the evaluation method of ZB Company's financial risk status.Based on the ZB Company's five-year annual report data for 2012-2016,the current status of financial risks was studied from the four dimensions of financing,investment,operations,and income distribution.Twelve financial indicators and six non-financial indicators were selected to construct ZB Company's financial evaluation system.The evaluation results show that ZB Company's financial risk status in the past three years is in a relatively high risk state.Ultimately,specific risk control recommendations are given in relation to the actual development of the ZB Company and industry characteristics.This article has a certain research value for large-scale retail companies' financial risk assessment and control initiatives,which will help improve the company's financial risk identification and response capabilities.