Evaluation And Cause Analysis Of Financial Crisis Based On Efficacy Coefficient Method

In the process of Internet transformation,traditional industries tend to pursue large and comprehensive while ignoring specialization and refinement.They continue to increase enterprise assets and expand enterprise scale through diversification strategy,but ignore the development of main business.SUNING.COM CO.,LTD.started marketing reform in 2009,sounded the horn of Internet transformation.From the vigorous mode innovation of Amazon and Wal Mart to the financial crisis,the founder lost control.In the process of transformation,SUNING.COM CO.,LTD.has also made similar problems.This paper selects SUNING.COM CO.,LTD.,which has long occupied the leading position of retail enterprises,as the case study to study the causes of its financial crisis.From the perspective of strategic implementation,this paper combs three different stages of SUNING.COM CO.,LTD.Internet transformation,including B2 C stage,o2 o stage and smart retail stage.Firstly,collect and sort out the financial indicators of SUNING.COM CO.,LTD.from 2009 to 2020,select 19 alternative indicators from the four dimensions of profitability,operating capacity,solvency and development capacity as the data analysis object,normalize the data with SPSS software,and obtain dimensionless data.Then use the entropy method to calculate the weight of financial indicators,sort according to the weight,select the first three items of each ability,conduct correlation test,exclude the indicators with large correlation,and finally screen out 10 indicators,and then obtain the comprehensive score of financial indicators according to the calculation formula of efficacy coefficient method to determine the financial crisis level of each year.Through the evaluation and analysis of the financial crisis by the efficacy coefficient method,it is found that the financial crisis presents a deteriorating trend,from the state of no alarm in 2009 to the state of huge alarm in 2020.Further through the analysis of financial indicators,it is found that the profitability is insufficient,the operation is unstable,the debt is too high,the growth is too fast and so on.Based on the conclusion of macro analysis and research,this paper further excavates the causes of financial crisis from the internal and external environment,and analyzes the factors of financial crisis from the perspective of business activities,financing activities and investment activities with the help of five forces model analysis tools.It is finally reflected in three aspects: first,the main business gradually loses its competitive advantage;Second,over reliance on borrowing and not good at equity financing;Third,diversified investment ignores the internal management of enterprises.