Research On Financial Risk Pre-warning Of Chunhui Corporation Based On The Method Of Efficiency Coefficient

With the marketization and globalization of economic, companies are not only facing opportunities but also facing a lot of risk and challenges. If a company could not prevent and defuse the financial risk which is the critical risk of the company, it may fall into the management dilemma or go into bankruptcy. The financial risk pre-warning system should be established in order to prevent and defuse the financial risk. Through the system, companies can perceive whether the financial standing is poor and take effective measures to avoid financial risk in time. The operational conditions of Chunhui Corporation which is the object of this thesis, are not stable because of the financial crisis and the European debt crisis. Preventing and defusing the financial risk by establishing financial risk pre-warning system is in urgent need.The method of efficiency coefficient which is the most suitable for Chunhui Corporation, is used in the process of establishing the financial risk pre-warning system. The research ideas are as followed:Firstly, the present status of research on the financial risk pre-warning is discussed and summarized, and the reason for using the method of efficiency coefficient is presented. Secondly, in order to provide theoretical basis for the later part of this thesis, the theory of financial risk pre-warning and efficiency coefficient method is analyzed. Thirdly, the financial risk pre-warning system for Chunhui Corporation is established based on the method of efficiency coefficient. Finally, pre-warning and analyzing the financial risk of Chunhui Corporation with the system, and presenting the way to prevent the financial risk.This thesis aims to establish the most suitable financial risk pre-warning system for Chunhui Corporation by using the improved efficiency coefficient method. Using the system, Chunhui Corporation can supervise and prevent its financial risk. Besides, the result of the pre-warning will provide some reference to shareholders, creditors, suppliers and other stakeholders of Chunhui Corporation.