Research Of The Financial Risk Pre-warning Model Of The ZD Company

China is a populous country, animal husbandry’s products are in hare demand, also with the support of national policy, many opportunities and challenges being in this trade. In this paper, ZD is such a livestock enterprise. Under the growing competitive pressure, it’s important for an enterprise to know how to control the financial risk, steady development, and make a profit constantly. This paper aim to establish a financial risk pre-warning model for ZD company to reflect financial problem accurately, found the signs of financial risk and avoid it effectively, then it can protect ZD company from the loss of financial risk.In this paper, the method of efficiency coefficient is proved to be the most suitable method in establishing the financial risk pre-warning model for ZD company. The ideas as follows: Firstly, with the study of literature and theory, the efficiency coefficient method is chosen to build a financial risk pre-warning model for ZD company. Secondly, by the analysis of the financial risk and the financial risk pre-warning system from ZD company, it can be found that it’s necessary to establish a financial risk pre-warning model for ZD company. Thirdly, the improved efficiency coefficient method is used to set up a financial risk pre-warning model for ZD company, the actual operating conditions of ZD company from 2010 to 2013 prove that the model is necessary. Fourthly, the model of financial risk pre-warning is used to predict the risk of ZD company, then ZD’s risk of financial is found in the middle of the alerts in 2014, at the same time, the result of ZD’s financial risk pre-warning synthetically is analyzed with some non-financial indexs. At last, it summarizes the results and concludes the reasons of ZD’s financial risk, and gives several reasonable suggestions to help ZD’s steady development.