Financial Early Warning Of Chinese Listed Companies In The Food And Beverage Industry

As China’s economy has entered a phase shift, as to the mass consumer-basedfood and beverage company, has entered a stage of rapid development. In recent years,affected by the national industrial policy, food and beverage expansion of listedcompanies to increase investment, cash flow prone to problems. In addition, food andbeverage companies listed in the external economic environment has becomecomplicated business, because of its high financial risk, which makes the enterprisemore attention to financial management, especially to be able to predict the financialearly warning of financial risk. This paper will be based on the financial earlywarning on industry characteristics, in order to make more financial warningconclusions applicability.In this paper, based on the theory of domestic and foreign financial early warning,binding characteristics and financial status of the food and beverage industry warningof financial analysis, financial and non-financial indicators selected financial warning.In this paper, starting from the financial crisis concept by using SPSS19.0software forthe food and beverage industry, the Shanghai and Shenzhen A-share financial datanon-ST96company’s2012and2013annual factor analysis, early warning indicatorsare divided into financial and non-financial indicators with six, were investigated debt,profitability, operations, growth, cash flow and other capabilities, while theseindicators are classified into seven common factor, factor scores derived financialearly warning model, and then use the principal component analysis, theestablishment of food and beverage companies listed on the primary component scoremodel, and thus calculated the listed company’s financial position overall score, therelative alarm within the industry to judge, but the common factor scores based oneach of the different police intelligence company analysis, and selected seven largecommon factor of changes in business the first three quarters of2014financial data isverified. Through mutual combination of theory and empirical analysis, to obtain a good prediction effect, help enhance rational investment company’s risk managementand investor awareness, while helping decision-makers to make the right decisions.Through this study, found that food and beverage companies in terms ofrisk-prone financial solvency, profitability, cash flow, etc. Finally, the common factorscore and put some of the scores improve internal control, strengthen budget policyrecommendations to strengthen cash flow management, and for the conso lidatedfinancial position of listed companies in the food and beverage industry.