Research On Financial Risk Assessment Of Company A Based On Entropy Method And Efficiency Coefficient Method

Financial risk has always been an unavoidable topic in the business development of an enterprise.It mainly refers to the impact of various internal and external factors and various emergencies in the financial activities of an enterprise,resulting in the actual financial situation can not meet the requirements of the expected financial situation,which causes losses to the enterprise in a certain period of time.In order to reduce the loss brought by financial risk to enterprises,many scholars and entrepreneurs at home and abroad have conducted research on financial risk assessment on this basis.Financial risk evaluation refers to the process of comprehensive evaluation of the financial situation of an enterprise based on the analysis and identification of the financial risks of the enterprise,the possibility of financial risks and the severity of the impact on the enterprise.Through effective financial risk evaluation,enterprises can take corresponding measures to control the financial risk within the acceptable range.The sample company a selected in this paper is a glass manufacturing enterprise.Through the research on the current operation situation and financial risk evaluation of the company,it is found that the financial risk evaluation adopts the financial statement analysis method and financial index analysis method.Based on the evaluation results of these two methods,it shows that company a has certain financial risk at present.In the process of specific research,it is found that the current financial risk assessment method of company a has the following problems: the single variable analysis can not reflect the overall risk situation,the qualitative analysis method can not quantify the financial risk,the personal factors of the analysts may affect the accuracy of the assessment results,and the effectiveness of the current assessment method is too late.In order to make up for the shortcomings of the current evaluation method of company a,this paper introduces entropy method and improved efficiency coefficient method to conduct empirical research on company a according to the actual situation of company A.Entropy method is used to determine the weight of financial indicators,which can well avoid the impact of the professional quality of analysts and human subjective factors on the evaluation results;while the improved efficiency coefficient method is used to evaluate the financial risks of company a,which can not only evaluate the specific and overall financial risks,but also accurately quantify the financial risks;at the same time Through the evaluation of the evaluation results,the risk evaluation grade set in the improved efficiency coefficient method can give the enterprise prompt when the financial risk reaches a certain critical value,thus ensuring the timeliness of adopting the method.After that,in the empirical research based on entropy method and improved efficiency coefficient method,it is found that at present,the causes of financial risk of company a are mainly manifested as excessive cost burden,slow collection of accounts receivable,limited production capacity and insufficient technical investment.In view of the main problems existing in company a,the author suggests that company a should pay close attention to the short board of procurement,reduce costs and increase efficiency,standardize the management of accounts receivable,stabilize production and increase efficiency,strengthen marketing construction and promote innovation with technology.