Research On Early Warning Of Financial Risks Of Muyuan Shares Based On Efficiency Coefficient Method

The pig breeding industry is one of the most valued industries in China’s livestock industry,and is an important component of China’s rural economy.The stable supply of pork has played an important role in stabilizing the national economy.The development of this industry is closely related to people’s lives.At the same time,the pig breeding industry is facing significant risks due to the continuous release of production capacity,market uncertainty risks,and tightening policies,resulting in a decline in pork prices.Based on this,this article selects Muyuan Co.,Ltd.as a case study object to conduct research on its financial risk early warning.This article uses the leading enterprise in the pig breeding industry,Muyuan Stock,as a research example to collate and analyze research literature on financial risks,financial risk early warning,and models at home and abroad,and analyze the potential financial risks of Muyuan Stock.Based on the financial data from 2017-2021,this paper constructs a feasible financial risk early warning model for Muyuan Shares.The entropy method is used to calculate the weight of financial indicators,and SPSS is used to analyze the correlation of financial indicators.The two comprehensively select comprehensive financial indicators to achieve objective weighting.After that,the improved efficiency coefficient method is used to calculate the individual scores of each financial indicator and the total scores of each year,completing the financial warning for Muyuan Shares.According to the financial risk early warning results,in 2017-2021,the early warning results of Muyuan Co.Ltd.were respectively light alarm,medium alarm,no alarm,light alarm,and light alarm.It can be seen that Muyuan shares have developed well,except for the abnormal financial indicators in 2018,which leads to significant financial risks.This article starts from four aspects: profitability risk,operational risk,debt repayment risk,and development risk,and combines the evaluation results of various risks to propose risk prevention countermeasures for enterprises: orderly scale expansion,diversified operation,standardized asset management system,strengthened digital management,optimized financing methods,improved financial risk early warning system,and improved risk prevention awareness.In summary,this article has improved the research on financial risk early warning in the pig breeding industry.