Study On Financial Risk Early Warning Of L Generation Company

In recent years,the reform of China’s power system has shown an in-depth state,and the external environment on which China’s power generation companies depend for survival and development is also constantly changing.Influenced by policies such as economic transformation and supply-side reforms in recent years,coupled with China ’s emphasis on protecting the ecological environment,promoting clean energy development,and achieving low-carbon development,coal-fired power companies face many risks,such as eliminating backward production capacity and achieving industrial structure optimization and upgrading,balancing market supply and demand,etc.The forms of risks faced by coal-fired power companies are diverse.On the one hand,they are financial risks,which can be directly withdrawn through financial indicators and analysis.On the other hand,they are non-financial risks,such as the external environment.Such risks may not be able to pass through traditional financial.The indicators are withdrawn directly,but in the end they all manifest as financial risk.In short,to comprehensively analyze the enterprise’s risk level and give early warning to it,not only need to pay attention to traditional financial indicators,but also to introduce non-financial indicators with industry characteristics based on the particularity of the industry and enterprise.The financial risk of an enterprise is not formed in a short period of time,but a cumulative process.If the financial risk is only a potential risk or has just appeared,if it is not discovered and contained in time,it will accumulate into a larger financial Risk,and even cause the enterprise to fall into financial crisis,so it is very necessary to build a suitable,perfect and scientific financial risk early warning system for the enterprise.Such a system can help the enterprise to discover potential or emerging financial risks in advance,and then take targeted measures to prevent it.Based on this background and purpose,this paper studies the financial risk warning of L Power Co.,Ltd.,a coal-fired power company.First,this paper analyzes the risk situation faced by L Power Generation Co.,Ltd.from two perspectives of operating risk and financial risk.Combining with the company’s existing financial risk early warning system,it is found that there are many problems existing early warning systems of L Power Generation Co.,Ltd.,and it is impossible to accurately and comprehensively effectively warn the financial risks it faces.Therefore,after comparing various financial risk early warning methods,this paper selects the most suitable method for L Power Generation Co.,Ltd.to build a model and apply it,that is,the combination of the efficacy coefficient method and the entropy weight method.Taking into account the company’s actual situation and industry,this article innovatively improves the efficiency coefficient method,and also introduces non-financial indicators with industry characteristics when selecting financial risk early warning indicators,which is more targeted and accurate for L Power Generation Co.,Ltd.early warning model of financial risk.After successfully constructing the model,based on the company’s real data from 2015 to 2018 for application and analysis,the potential and existing financial risks of L Power Generation Co.,Ltd.are pre-warned and evaluated,and the corresponding preventive measures should be targeted.The entire research not only has great practical significance for the company,but also provides ideas and directions for the industry’s financial early warning.