Research On Financial Risk Early Warning Of R&F Property Based On Efficiency Coefficient Method

As the real estate industry is closely related to other industries such as the steel industry and the construction industry,the rapid growth of China’s national economy and society have an important role in promoting the healthy and rapid development of the real estate industry.As national macroeconomic policies continue to be introduced,the market is downward,competition within the industry is fierce and the business performance of real estate enterprises is down.At the same time,the complex flow of funds and long investment turnover and return periods make it easier for real estate enterprises to break their capital chains and increase the likelihood of financial risk,which in turn affects the long-term stable development of real estate enterprises.Therefore,it is important to pay great attention to the early warning of corporate financial risks and to carry out the necessary financial risk analysis and control of the real estate industry in order to better promote the healthy and rapid development of the industry.In order to accelerate its own diversified business development,R&F Property Enterprise acquired a large number of Wanda hotels in 2017,but the hotel business did not bring excessive profits to the enterprise,but instead took up a large amount of funds of the enterprise.In addition,the continuous losses of R&F Property Enterprise’s operation and the tight cash flow have led to a significant increase in the enterprise’s debt servicing risk and a more severe financial risk situation.Therefore,this paper selects the R&F Property Enterprise as the research object,and the main research contents are as follows.Firstly,this paper selects the improved efficacy coefficient method for research and analysis by collating the relevant literature on financial risk early warning at home and abroad and providing a detailed introduction to the relevant theoretical knowledge.Secondly,this paper selects the R&F Property enterprise as the research object,analyses the internal and external environment it is in respectively,and calculates and analyses the specific relevant financial indicators and the four capabilities of the enterprise,and finds that R&F Property faces a greater risk of debt servicing.An effective early warning model for financial risk was then constructed through a combination of correlation analysis,entropy value method and efficacy coefficient method.Finally,the financial data indicators of R&F Property in the past five years were calculated and analysed,and the early warning results of R&F Property’s financial risks were obtained as medium warning,medium warning,medium warning,medium warning and heavy warning,indicating that the financial risks of R&F Property are increasing.Finally,based on the early warning results,the causes of financial risks were analysed and corresponding countermeasures and suggestions were put forward to R&F Property,such as establishing a sound early warning system,strengthening internal control,keeping abreast of market changes and promoting diversified development,and optimising capital structure,and widening financing channels and strengthening cash flow management to improve asset utilisation efficiency,etc.,in order to reduce the financial risks faced by the enterprise and promote sustainable and healthy development of the enterprise.This will reduce the financial risks faced by enterprises and promote sustainable and healthy development.