Research On Financial Risk Pre-warning Of Asset-light Livestock And Poultry Breeding Enterprises

Livestock and poultry industry has been playing an important role in the development of agriculture,and has always been inseparable from People’s Daily life.Since the beginning of the new century,the livestock and poultry industry has made progress in production and management.At the same time,in order to meet the accelerated pace of urbanization,the improvement direction of modernization and standardization has been gradually put on the agenda.Here,the choice of enterprise operation mode becomes more and more important.Under the current market economy system,more and more livestock and poultry enterprises start the road of transformation and try to transform to the asset-light operation mode for long-term development.This mode can obtain high returns by occupying the core link and using low investment.However,while seeing the advantages,we should also recognize its disadvantages.As the share of fixed assets decreases due to the separation of heavy assets,the enterprise’s anti-risk ability also decreases.In addition,due to the outsourcing of production links,it is difficult to form strict control of product quality,which will also cause product quality risks.Therefore,in order to reduce the risk of the asset-light operation mode,if the enterprise can build a precise financial risk early warning system and implement early warning for the financial situation,it will enable the healthy and sustainable development of the enterprise.As a representative enterprise in livestock and poultry breeding industry,WFG pioneered the asset-light operation mode of "company +farmer" and occupied the full market.Therefore,taking WFG as the research object,it has the exemplary role in the industry.On the basis of relevant literatures at home and abroad,this paper uses the combination of entropy method and improved efficiency coefficient method to build a financial risk early warning system.First of all,the financial risks of the company are identified according to the risks of the livestock and poultry industry and the internal risks of the company.By selecting the financial data of the company from 2017 to 2021,the financial risks in the development process are found out.Then from the four angles of financial risk evaluation of its risk situation,combined with the actual business situation of the enterprise,put forward specific financial risk prevention countermeasures.The final research conclusion is that,although the financial risk of WFG is small in the past five years,the enterprise operation has been in a bad state.Therefore,we should actively seek multichannel financing,improve the operation model,perfect the existing investment system,and achieve sustainable development.