Research On Financial Risk Early Warning Of ZB Group

In the wave of big data and Internet development,"new retail" model appears,which makes the competition of Chinese retail industry more and more fierce.In addition,in the retail industry becoming saturated,there are still many small and medium-sized retail enterprises to seize the market,which also intensifies the market competition.In recent years,it is not uncommon for retail enterprises to get into difficulties due to financial risks,which rings an alarm bell for retail enterprises.Without timely and effective prevention and avoidance of various risks,enterprises will easily fall into financial crisis and even bankruptcy.Therefore,the timely and effective prediction of possible financial risks and the corresponding preventive measures are of great practical significance to reduce the adverse economic consequences of financial risks to the enterprises.This paper takes ZB Group as the research object.First of all,the financial risk,financial risk warning,entropy value method and efficiency coefficient method and other related theories are elaborated.Secondly,the financial data of ZB Group in recent 5 years are selected to analyze and identify its financial risks.Based on the above theoretical basis,combined with the situation of the company and industry characteristics,this article selects the ZB group of financial data from 2017 to 2021,from the profit ability,operation ability,debt paying ability,development ability,the cash flow ability preliminary selection in five dimensions apply to the company’s financial indicators,according to the entropy method and Pearson correlation analysis further screening of financial indicators.In addition,five non-financial indicators are added to construct a set of financial risk warning system applicable to ZB Group.Then,the entropy method is used to determine the index weight.Thirdly,it comprehensively evaluates the financial risk of ZB Group through the efficiency coefficient method,calculates the financial risk early warning score value of the recent five years,judges the alarm level according to the score value,and analyzes the results of the early warning.Finally,according to the ZB group financial risk early warning results found problems,put forward specific financial risk prevention countermeasures.