Research On Early Warning Of KJ Company’s Financial Crisis

Under the background of "carbon peak" and "carbon neutral",new energy enterprises can closely pursue,improve the optimization of industrial structure,and promote the overall strength of the country.However,due to the relatively late start of domestic new energy companies,and the characteristics of fierce competition and high research and development costs of such companies,we have encountered many challenges in the future development process.Therefore,in new energy enterprises,it is necessary to pay attention to their own financial risks,grasp possible financial crises,and establish corresponding financial crisis early warning models.When conducting financial crisis early warning,it is possible to better judge the financial risk level of the company,thereby gaining a greater understanding of the difficulties faced by the company in finance,allowing the company to take preventive measures in advance,thereby preventing the occurrence and further expansion of the crisis.This article takes KJ Company as an example to explore the establishment and application of its financial crisis early warning model.First of all,by consulting relevant literature at home and abroad,it has made a relevant classification.Secondly,based on the actual situation of KJ Company and the composition of its assets and liabilities,from a financial perspective,this paper analyzes its risks from three aspects: investment,financing,and operation.Thirdly,based on the selection of early warning indicators,20 indicators were selected,and 11 indicators were selected using the entropy method and correlation analysis methods.A set of crisis early warning indicator systems was constructed.These indicators were weighted using the entropy method.After that,the specific score of KJ Company’s financial crisis between 2017 and 2021 was calculated using the efficiency coefficient method,which was divided into early warning levels,And analyzed the early warning results.On this basis,corresponding safeguard measures have been taken for this early warning mode to enable it to better play its early warning function.This paper uses a combination of entropy method and efficiency coefficient method to establish a financial crisis early warning model for KJ Company.It is hoped that this study can meet the management needs of KJ Company,thereby helping to improve its crisis early warning and prevention capabilities,and also providing some help and reference for the decision-making of stakeholders of KJ Company.