Research On Financial Risk Early Warning Of ZM Company Based On Efficacy Coefficient Method

In recent years,under the guidance of the state's "structure adjustment and capacity reduction" policy,the coal industry's mergers and acquisitions and restructuring have continued to advance,the industrial boom has rebounded significantly,and corporate profitability has steadily increased in the short term.However,the slowdown of macroeconomic growth and the increasingly strict environmental protection policies will curb the growth of coal demand to a certain extent.In addition,the resource integration of the coal industry in the early stage and the accelerated expansion of the industrial chain make most coal companies have high debt levels and operating cash flows.These factors will increase the probability of financial risks for coal companies.Once a company has financial risks,it will be difficult to meet challenges and meet opportunities in the fierce market competition.In order to avoid operating difficulties and bankruptcy crises,it is particularly important to warn financial companies of financial risks.In view of this,this article first reviewed the relevant literature on financial risk warning at home and abroad and summarized the current status of the study,and expounded the feasibility of selecting the Efficacy Coefficient Method for the financial risk warning in this paper.Second,based on the development status of the domestic coal industry and ZM company's own operating characteristics,the ZM company's financial risk warning indicator system was constructed,and the original indicators were screened using the Entropy Method and Pearson to evaluate the specific warning situation of the ZM company.At the same time,Z-SCORE model is used to verify the results of Efficacy Coefficient Method,and the two early warning situations are basically consistent.The results show that the ZM company's 2014-2018 financial risk early warning ratings are medium police,heavy police,heavy police,medium police,and medium police.The risks are mainly due to the low asset management efficiency,poor profitability,and cost of ZM.High rate,irrational capital structure,etc.Finally,in view of the problems found in the early warning of ZM company,this article proposes corresponding risk prevention and countermeasures,such as establishing and improving financial risk supervision departments,raising awareness of risk prevention,expanding financing channels,and adjusting debt structure.Through the construction of the ZM company's financial risk early warning system,it can not only provide a basis for decision-making for property owners,business managers,creditors and other stakeholders of the ZM company,to help enterprises to carry out strategic adjustment,with the purpose of other companies as well as the coal industry,financial risk early warning and provides a feasible scheme,allows the company to take effective risk prevention measures in advance.