Research On Financial Early Warning Of J Company Based On Risk Coefficient Method And Risk Coefficient Method

Since 2019,for my country,the macroeconomic growth rate has been under pressure,and changes in the external economic environment have had a great impact on the automotive industry.The sudden arrival of the epidemic in 2020 has caught many industries in China by surprise.For the automotive industry,it is even worse.With the emergence of the "new normal" of national economic development such as slowing economic growth and structural adjustment,the traditional automobile manufacturing industry is facing greater development pressure,there are many unknown factors;in addition,the efficiency of enterprises’ utilization of resources continues to decrease,making it more difficult to complete the task of eliminating backward enterprises,and the market competition is still fierce;in addition,there are relatively large unstable factors in the global market,which cannot be avoided.The avoided ones will have an impact on the auto industry,and due to the impact of complex international trade relations and the epidemic,auto manufacturers are facing greater difficulties.For the macro policies introduced by the state,it is an opportunity and a challenge for the automobile manufacturing industry.Under the current situation,the development situation of the domestic automobile industry is relatively severe,the development of automobile manufacturing enterprises is hindered,and they are faced with greater financial risks.If sufficient attention is not paid,it is likely to cause more serious consequences.Therefore,for automobile manufacturing enterprises,it is necessary to strengthen the financial risk early warning management of the enterprise,and carry out financial risk early warning analysis with an appropriate early warning model,so as to realize dynamic monitoring of financial conditions and pay attention to changes in abnormal indicators,so as to formulate timely response strategies to ensure the healthy development of enterprises.Company J is a listed company in the automobile manufacturing industry.In recent years,the company’s performance has been poor.From 2015 to 2020,its performance fluctuated greatly,its financial performance was unstable,and its net profit after deduction for the past three years showed Negative value,there is a greater financial risk.This paper takes J Company as the research object,and the main contents are as follows:First,around the subject of financial risk early warning research,it sorts out and summarizes relevant literature at home and abroad,and organizes writing ideas;then,it defines the concept of financial risk and clarifies the definition of financial risk early warning;The mechanism and principle of the entropy method and the efficacy coefficient method are introduced,so as to clarify the basic theory and the method of financial risk early warning on which this article is based.Secondly,it introduces the general situation of the company,the financial situation of J company is analyzed from the four major operating capabilities of the company,and investigates the company’s financial risk early warning status.According to the investigation results,it is concluded that J company needs to establish financial risk.The conclusion of the early warning model;when constructing the early warning model,the financial indicators are selected from the four major operating capabilities,and the entropy method is used to weight the indicators,and the Pearson correlation analysis is used to screen the indicators;Standard Value as a reference,determine the evaluation standard value of the index,and use the efficacy coefficient method to calculate the early warning score;the early warning results show that from 2015 to the middle of 2020,the risk warning level of J company in the past four years is medium warning.It can be seen that,Company J’s current financial risk performance is not good,so it should analyze the results of the early warning to clarify the problem.Finally,in view of the existing problems of J Company,this paper proposes financial risk early warning and safeguard measures to ensure that the enterprise can carry out early warning work reasonably and effectively.In addition,in view of the current financial risk situation of J Company,financial risk prevention and control measures are proposed.Specific countermeasures are put forward in terms of operating capacity.The research in this paper not only helps J Company to strengthen its understanding of its own financial risks,improve its awareness of risk early warning,and prevent risks in a timely manner,but also hopes to bring inspiration and reference to other companies in the same industry.The innovations of this paper are mainly reflected in: On the one hand,in the previous research on financial risk early warning by experts and scholars,more emphasis was placed on empirical research,and it was based on industry research,which made the constructed model lack universality when applied to a single enterprise.Based on the automobile manufacturing industry,this paper selects J Company to conduct a single case study,considers the actual application of the enterprise,based on J Company’s own characteristics and actual production and operation conditions,and selects financial indicators with reference to the questionnaire survey results and recognized performance evaluation standards,and constructs a suitable Based on the enterprise’s own financial risk early warning model,it is not only highly targeted,but also provides a reference for the case study of financial risk early warning orders.On the other hand,this paper combines the entropy method,correlation analysis and efficacy coefficient method.First,through the entropy method and correlation analysis,the early warning indicators are screened and weighted in a more objective way,so as to make the process of indicator screening and weighting easier more scientific.Secondly,in the early warning evaluation of J company,the revised efficacy coefficient method is used to increase the evaluation level and make the early warning results more accurate.This paper has certain characteristics in the research method,and the combination of entropy method,correlation analysis and improved efficacy coefficient method can improve the accuracy of the entire financial risk early warning model.