Research On Financial Risk Early Warning And Prevention Of JN Company

The financial risk early warning system is like an alarm for business activities,which has extremely important significance in sensing the financial situation of enterprises in advance,avoiding the threat of bankruptcy,promoting sustainable operation and healthy development of enterprises.In the current global environment of achieving "carbon peak" and "carbon neutral",thermal power enterprises are not only the energy supply pillar of current economic development,but also the pacesetter in the face of green and low-carbon economic transformation.The early warning evaluation and risk prevention of financial risks of enterprises in this industry have an important significance that cannot be ignored for the smooth operation of China’s social economy under the new situation.In the preliminary work of this article,the focus is on reading domestic and foreign references.On the premise of fully studying the relevant theoretical research foundation,combined with the financial situation characteristics of the energy industry where JN Company is located,this study is carried out.The article utilizes the financial data of JN Company in recent years,starting from the balance sheet,income statement,etc.,to process and calculate typical financial indicators of the company,and summarize them to form the data basis for this case study.Secondly,analyze and study the financial risks of JN Company from multiple perspectives such as fundraising,investment activities,operational processes,and income distribution stages,explore the reasons for the formation of the company’s risk hazards,and demonstrate the necessity of constructing an early warning model.Next,using financial data from 2017 to 2021 for the five years,we will select indicators for the company’s debt repayment,profitability,operations,and growth.We will use the entropy method and efficacy coefficient method for quantitative analysis to construct a financial risk warning model for the company,in order to intuitively understand the company’s financial risk situation and provide reference for stakeholders of JN Company.Finally,based on the results of the preliminary risk analysis,combined with the overall industry environment and the actual situation of the company,reasonable and effective business management suggestions are proposed for JN Company to reduce its risk hazards.Through the research in this article,it was found that the current financial risks of JN Company mainly come from coal and electricity transformation and upgrading,fluctuations in raw material prices,internal management measures,and other aspects.A set of financial risk early warning system that conforms to the characteristics of the enterprise was constructed,and targeted strategies such as policy support,optimizing financing channels,improving resource allocation,enhancing employee education,and strengthening inventory management were proposed,And a normalized financial risk warning and improvement system should be established.This article provides a new case for the financial risk warning research of thermal power industry enterprises under the current "dual carbon" background,and provides a certain reference for the in-depth development of financial risk prevention research.