Diagnosis Of The Financial Crisis On The Basis Of The Financial Foretelling System

With the gradual formation of the whole systemic globe and the fierce competition, various crises in enterprises could damage the whole structure as viruses any time. The frequency involving enterprise bankruptcy and other financial dilemma is higher and higher. For the survival and development of the modern enterprises, finding of the developmental chances and prevent the potential and current crisis have the same importance. The diagnosis for the financial crisis appeared on this background. By analyzing the enterprises' financial condition, crises can be found and problems could be solved in time. In this way, some enterprises could avoid bankruptcy. But the current financial crisis diagnosis system has its undeniable faults: such as lacking of the detailed judging criteria, no efficient combination with the crisis management, lag behind the crisis and no prophylactic effect. Analysis was limited only by the accounting data so that denying the essential non-accounting factors. With the observation on the spot, collection relatedmaterials, The system--- alarm tracking system, which can diagnose thefinancial crisis effectively is being found. The endpoint of the system is for the sake of the enterprise' s strategical target. The direct object is to prevent and solve the financial crisis. By setting up the prophylactic criteria , comprehensive analysis can be achieved by the Dupont analyse method, the radar graphic diagnosing-analyse method, standard comparative diagnose method, problem tree diagnose method, cash flow matching method and trend estimation method. Check the causes of the formation of the financial crises and get into the procedure to solve problems. With the explicit criteria, the accuracy and efficiency of diagnose financial crisis will improve greatly. The combination of the alarm foretelling system and the crisis diagnosis is more practical for the enterprises current management. The qualitative and quantitative analysis will support the diagnosis of financial crisis theoretically. Otherwise, the alarm tracking diagnosis is the supplement for the crisis foretellinging system. In general, the study on the financial crisis diagnosis is beneficial theoretically and practically.