Research On Financial Risk Evaluation Of XH Company Based On Efficacy Coefficient Method

As an industry that spans the three major fields of agriculture,industry and service industry,the agricultural product processing industry always faces many difficulties and challenges in the production and operation of enterprises.At present,China's agricultural product processing industry is in the process of accelerating development.However,most agricultural product processing enterprises in China,especially small and medium-sized agricultural product processing enterprises,generally have problems such as backward production technology,lack of professional talents,chaotic internal management,and imperfect financial risk assessment system.Among these risks faced by companies,financial risks are the top priority.Most agricultural product processing enterprises are not aware of the importance of the company's financial risk management,and there are widespread problems such as difficulty in raising funds,high inventory risks,and unsound financial systems.The XH Company selected in this paper is an agricultural product processing company,mainly engaged in vegetable cultivation and processing of pickles.The company has been in good operating condition since its establishment,but in the past two years,due to factors such as rising raw material cost of agricultural products and difficulties in financing,the company's operating conditions have declined and there are high financial risks.Therefore,this paper will establish a set of financial risk evaluation system for the company's characteristics and adapt to the industry for XH Company,help its management to find financial risks early and respond to financial risks in a timely manner,and enhance the emphasis on financial risk assessment.In this paper,12 financial risk indicators were selected in the company's financial statements for 2013 to 2017.The analytic hierarchy process was used to score experts among the indicators,and the weight of each indicator was determined.Then,through the improved efficiency coefficient method,the scores of each index are calculated and calculated,and the scores of individual indicators,the scores of index analysis and the scores of comprehensive analysis are obtained.Through the comparison of the size of each indicator score and the given financial risk interval,the company's financial risk level is judged,and the reason for the risk is analyzed.And put forward opinions and suggestions on the financial risk and financial risk evaluation for the company.