Research On Financial Risk Evaluation Of BYD Based On Improved Efficacy Coefficient Method

The new energy automobile industry is one of the important strategic development industries of our country.Since the rise and development of the new energy automobile industry,our government has given strong support to the industry in the aspects of development planning,policy subsidies and traffic restrictions,thus a part of the new energy automobile enterprises have grown rapidly by supporting the conditions.At present,the new energy vehicle industry is in a stage of transition from policy-driven to market-driven gradually.The government is weakening the support strength in a planned way and gradually raising the relevant policy threshold,which makes it increasingly difficult for new energy vehicle enterprises to obtain government policy subsidies.As the development prospect of new energy vehicles has become a consensus,domestic and foreign competitors continue to pour in and increase investment efforts,and the market competition is becoming increasingly fierce.So the new energy automobile enterprises in operation ability,profit ability and development ability facing the financial risk has great uncertainty and complexity,it is necessary for a reasonable evaluation of financial risk,and formulate the corresponding preventive measures to prevent the emergence of enterprise financial crisis,to improve their overall competitiveness,realize sustainable development.Based on the relevant overview and theoretical basis of financial risk and financial risk evaluation,this paper takes BYD as the research object,analyzes and studies the financial status quo and risk evaluation methods of the enterprise,and finds that the enterprise has financial risk in many indicators.In addition,the current financial risk evaluation method has some shortcomings,such as the weight of financial risk evaluation indexes is not clear,the influence of accounting related policies on financial indexes is greater,and the financial risk evaluation cannot fully match the strategic goals of enterprise development.To make up for the inadequacy of the current evaluation methods,this paper,by using the analytic hierarchy process(AHP)and the improved efficacy coefficient method and combined with enterprise’s profitability,operation ability,solvency,developing four dimensions to establish a comprehensive evaluation system of financial risk,the selection of 2017-2021 financial data,to score the level of financial risk of the company and the analysis of the results.Through the analysis of the comprehensive score evaluation results of enterprises,it is found that the financial risk of BYD in 2017-2018 is maintained at a moderate level.In 2019,due to the influence of subsidy decline,negative sales growth and net profit decline,there is a large financial risk,and the overall financial risk in 2020-2021 is moderate.In terms of the evaluation results of each dimension,in addition to its good performance in development ability,BYD currently has financial risks in profitability,debt paying ability and operation ability,such as low net interest rate,poor management of inventory and accounts receivable,and high asset-liability ratio.According to the existing financial risk,this paper puts forward from the aspect of profitability to enhance the management of costs,strengthen the scientific decision-making mechanism of investment projects,and build the optimization of profit management process.From the aspect of operation ability,it puts forward the optimization suggestions of strengthening inventory control level and strengthening receivables collection management.From the aspect of solvency,the paper puts forward some suggestions to control liquidity liabilities,optimize capital structure and make reasonable repayment planning.This thesis discusses the evaluation of BYD’s corporate financial risk,hoping to play a practical guiding role in strengthening BYD’s financial risk management awareness and coping ability,reduce the possibility of corporate financial risk,promote more stable enterprise development,and provide some reference value for other enterprises in the industry.