Research On Financial Early Warning And Prevention And Control Measures Of DN Automobile Company Based On Improved Efficiency Coefficient Method

As an important pillar industry in China,automobile industry has an important impact on China’s economic development.For automobile enterprises,only by ensuring their own good financial status can they better cope with market competition,effectively enhance their competitiveness and ensure sustainable development of enterprises.However,in the actual operation process of enterprises,due to the influence and effect of a variety of factors,the probability of financial risks in enterprises is gradually increasing.And,as a result of business enterprise in the production and business operation the money is very big,therefore,automobile enterprise’s debt ratio is usually high,and products because of its particularity,car companies and higher levels of accounts receivable,and auto enterprise funds under pressure is relatively large,so as to make the automobile enterprise’s financial risk problems are put forward.Therefore,how to better prevent and control the financial risks of automobile enterprises,so as to enhance the overall competitiveness of enterprises,is the requirement of sustainable development of enterprises,and is of great significance to ensure the healthy and orderly development of China’s automobile industry.Taking DN Automobile Company as an example,this paper analyzes the characteristics of the automobile industry and the company’s current operating situation.Based on the principle and analysis steps of improved efficiency coefficient method,a financial risk early warning system is constructed.On this basis,analyzes the sources of financial risks of DN automobile Company,and puts forward measures to prevent financial risks.This paper first describes the research background and significance of this paper,review and comment on the research of financial risk early warning at home and abroad,also explains the research content and research methods of this paper.Combined with the collected literature,this paper expounds the meaning,classification and characteristics of financial risk,also introduces the related concepts of various financial risk early warning models,and then explains the analysis steps and advantages of the improved efficiency coefficient method.Combined with the actual research of DN Automobile Company,this paper briefly describes the development status of DN automobile company,and then analyzes the financial status of DN automobile company from the four aspects of profitability,operating capacity,debt paying capacity and development capacity,and concludes the necessity of DN automobile company to build a financial risk early warning system.Then,based on the improved efficiency coefficient method,the DN auto company financial risk early warning model is constructed.Firstly,early warning indicators are selected,and then index weights,evaluation standard values and risk levels are determined.Finally,financial data of DN Automobile Company in 2020 are used to test the validity of the model.Finally,based on the results of financial early warning of DN Automobile Company,the measures to improve and optimize the financial management of DN Automobile Company are given.From the perspective of profitability,we should strictly control the occurrence of risks through strict cost management,scientific investment to avoid the occurrence of risks,and improve the profit control mechanism to prevent the occurrence of profit risks.From the perspective of operating capacity,more reasonable inventory risk prevention and control strategies should be formulated to effectively prevent and control the risk of accounts receivable;From the aspect of solvency,debt risk should be strictly controlled,capital structure should be optimized to avoid financial risk,and debt repayment risk should be prevented through reasonable debt repayment planning.From the perspective of development capacity,asset use risks should be strictly controlled,development risks should be prevented through product innovation,and new energy vehicles should be developed to improve business income.It is hoped that the research results of this paper can help DN Automobile Company to smoothly transition to the critical period.At the same time,some research content can also be applied to other enterprises,which has certain reference value.The main innovation of this study is the innovation of research methods and research objects.First of all,in terms of research methods,the previous efficacy coefficient method is improved to ensure more accurate financial warning results,with a certain degree of innovation.Secondly,in this study,local new energy vehicle enterprises are selected as the research object to further expand the scope of financial early warning research.At the same time,it is more consistent with the current national efforts to develop the new energy vehicle industry,which can provide reference and reference for the financial early warning of the same type of enterprises,with a certain degree of innovation.