Research On The Financial Risk Early Warning System Of LH Company

Nowadays,the global economy is developing rapidly and the industry is changing with each passing day.With the continuous advancement of my country's foreign economy,all walks of life have kept pace with the world.my country has turned from a large manufacturing country to a strong manufacturing country,reaching a world-class level.However,the faster the development and the fiercer the competition,the more challenges companies face and the greater market pressure they have to bear.In this case,the financial risk early warning of the enterprise is obviously quite important.In recent years,my country's industrial economic growth has gradually slowed down,and economic structure has changed.Due to the high raw material costs and poor downstream industries in the steel manufacturing industry,many companies are in disadvantageous situations such as inventory backlogs and declining profits.Manufacturing is the lifeblood of my country's national economy.The steel manufacturing industry is my country's basic industry and is inseparable from the people's lives.This article will choose steel manufacturing company LH as an example to make a detailed exploration of its financial risk early warning,which has certain practical significance.This paper takes LH Corporation,a small and medium-sized steel manufacturing company as a research example,summarizes and sorts out the research literature on financial risk early warning at home and abroad,and analyzes the existing financial risks in the operation of LH Corporation.Because the company's existing financial risk early warning system does not It is sound,the employees' risk warning awareness is not strong,and there is no special warning department.Therefore,this article will address the above problems of LH Company and build a set of targeted,convenient and available financial data based on the financial data from 2014 to 2018.Financial risk early warning system.This article first uses the entropy method combined with the SPSSAU system to use the Pearson correlation analysis to select the best early warning indicators from the financial indicators of the four major capabilities of LH,and give them objective weights.Then use the improved efficiency coefficient method,combined with the standard values of the "Enterprise Performance Evaluation Standards" and the "Interim Measures for the Management of Comprehensive Performance Evaluation of Central Enterprises",to establish a financial risk early warning system suitable for LH companies,by calculating comprehensive indicator scores and individual indicators Score,make precise early warning of LH company's financial status.The early warning results show that in the past five years,LH's early warning status was in the state of middle police,middle police,middle police,middle police,and light police.According to this,it can be seen that the company has had financial abnormalities in recent years.occur.When proposing improvement measures for LH company,this paper starts from the company's four dimensions: debt repayment risk,profit risk,operation risk,and development risk.The four dimensions are respectively conducive to the further development of the company's policy and countermeasures,and from LH company Starting from the entire financial early-warning system,it puts forward more directional and implementable related proposals for the establishment of the company's financial early-warning work.It is hoped that these measures can provide practical help to LH and provide reference for other companies in the same industry.