Research On Financial Risk Evaluation And Control Of XF Textile Company Based On Efficacy Coefficient Method

China has always been a production and export country in the manufacturing industry,as an important component of the manufacturing industry and the support of the national economy,the stable development of the textile industry is a key factor in China’s international competition.In recent years,due to the impact of Sino-US trade war and epidemic factors,the overall development of China’s textile industry is poor.Under the dual pressure of internal and external environment,listed companies in the textile industry are facing unprecedented risks and challenges.Therefore,through the evaluation and control of the textile industry financial risk research,not only make the company managers better understand their internal potential financial risks,at the same time help the company to avoid the risk in a better direction,improve the company’s competitiveness in the industry market.This paper takes XF Textile Company as the research object.According to the risk evaluation and control theory,this paper studies the financial risk of XF Textile company by means of literature research and efficiency coefficient,and puts forward countermeasures and suggestions.Firstly,the general situation and financial risk status of XF Textile Company are described.On this basis,combining the actual development situation of the company with the market environment,15 index systems that can represent the company’s financial risks are selected from the four ability dimensions of debt repayment,development,operation and profitability.The analytic hierarchy process is used to score and assign weight to each financial index and determine the weight of the financial index.With reference to the characteristics of the textile industry and "Enterprise Performance Evaluation Standard Value",the utility coefficient method is used to calculate the comprehensive evaluation index of XF Textile company to judge the financial risks faced by the company.It is found that the company has risks such as poor asset realization ability,lower sales growth rate than the industry average level,more inventory,less timely receivables recovery and poor profitability.Finally,in view of the risks faced by the company,corresponding suggestions are put forward from the aspects of debt repayment,corporate development,operation,profit and other five risk control aspects,including:expanding financing channels and financing methods,strictly controlling debt risks;Formulate more appropriate development strategies and carry out diversified operations;Improve the inventory management mode,enhance the management level of accounts receivable;Strengthen the management of cost and expense,and strengthen technical reform and innovation,improve economic benefits and other countermeasures and suggestions.The research of this paper can not only help XF Textile company better identify and control the internal financial risks,but also provide reference for the prevention of financial risks of other listed companies in the textile industry,which has strong theoretical and practical significance.