Financial Risk Early Warning Research Based On Efficiency Coefficient Method

As the market economy environment becomes more and more complicated,the competition faced by companies in the market is becoming increasingly fierce.While many companies are accelerating their development,there are also various risks,big and small.Among them,financial risks are closely related to the survival of the company.Although China's dairy industry started late,due to the continuous improvement of living standards,people's demand for dairy products is increasing,which promotes the rapid development of the dairy industry,and the rapid growth will be accompanied by various uncertain financials risk.Therefore,companies need to carry out early-warning research on financial risks,through early-warning signals and specific analysis of financial conditions,financial problems can be found in time and reasonable and effective measures can be taken to prevent and control risks to avoid the company from going bankrupt.In this paper,Beingmate is the research object of case analysis.Firstly,by reviewing relevant literatures,it is found that the application of the efficacy coefficient method in financial risk early warning research is more and more extensive.Therefore,the efficacy coefficient method is introduced into the financial risk early warning research in this paper.In order to make the early warning results more accurate,the evaluation standard coefficient,the basic score and the adjustment score in the traditional efficiency coefficient method are improved.Secondly,according to the financial data of Beingmate in 2013-2017,the company's financial status is analyzed from the profit,operation,debt repayment and development capabilities.Combined with the company's internal and external environment,the company's risk situation is further elaborated,and the necessity of constructing a financial risk early warning system is put forward.Then,with the help of correlation analysis,the financial indicators are selected.Referring to the weighting table in the “Detailed Implementation Rules for the Comprehensive Performance Evaluation of Central Enterprises” promulgated by the State-owned Assets Supervision and Administration Commission,the weights of the indicators are determined,and the financial risk early warning system suitable for Beingmate is established by using the efficacy coefficient method.Finally,according to the early warning system,the calculation results are obtained,and a series of causes behind the big risks are analyzed in depth,and corresponding measures are proposed,such as: adjusting the company's development strategy,investing heavily in product research and development,strengthening quality management,and keeping up with relevant policies.Through the research of this paper,we can find that the efficiency coefficient method has the advantages of low investment cost,convenient operation and less timeconsuming.It can judge the risks from profitability,operation ability,solvency and development ability respectively.It can analyze the company's operation situation comprehensively and has certain practical value.And the financial risk early warning system constructed by Beingmate is reasonable and effective.The early warning results are as follows: the warning level in 2013 is light police,the heavy alarm in 2014-2015,and the big police in 2016-2017.This study not only provides certain references for Beingmate's managers and creditors,but also hopes that this study can serve as a reference for other companies in the dairy industry to strengthen their ability to identify and resist their own risks.