Study On Financial Risk Early Warning Of Yongxing Sponge Company

In a complex and volatile market economy, any enterprise has to face the risk of being everywhere. Therefore, the success of the enterprise depends largely on its risk management ability. At present, the problem of financial risk control in financial management has risen to the height of enterprise strategy management. Has become a hot topic in theor etical circles in the scale of production of the majority of small and medium-sized enterprises in expanding at the same time, is also facing the financial risk plagued, "short-lived" phenomenon in the development of small and medium-sized enterprises are facing the problem is becoming more and more prominent. To solve the financial risks in the process of development, the first thing to do is to construct own characteristic of the enterprise’s financial risk early warning system, found in a timely manner, predict the potential financial crisis of the enterprise, take early preventive measures, to avoid falling into financial distress. The Yongxing sponge company is a polyurethane foam enterprises, in recent years, due to the impact of the financial crisis, the global economic downturn, weak in the downstream enterprises of furniture, automobiles, tourism activities, sports health care equipment, coupled with the company’s product is a popular route, excess domestic production capacity, as well as raw materials prices rise, to the company difficult, financial situation gradually deteriorated. Therefore, under the tremendous pressure of market competition, how to control financial risk, profit is continuously become the company’s key. Through Yongxing sponge co mpany to build a model of financial risk early warning, timely monitoring of the financial situation of the company, help the company promptly correct the bad management of misconduct, to effectively prevent and dissolve the financial risk of the company.In this paper, first of all, the domestic and foreign financial risk early warning research status is discussed, at the same time, the classic financial risk early warning model is summarized. Secondly, the concept and characteristics of financial risk, financial risk early warning theory and efficacy coefficient method theory are summarized, to provide a theoretical basis for the construction of the financial risk early warning model; on the basis of theoretical research, the financial risk situation and the cause of the financial risk of Yongxing sponge company are analyzed. Then the necessity of Yongxing sponge company to build financial risk early-warning model, and the feasibility of establishing financial risk early-warning model based on efficacy coefficient method is discussed; using the improved efficiency coefficient method to construct the financial risk early warning model for Yongxing sponge company, according to the "Interim Measures" of the comprehensive performance evaluation and managemen t of central enterprises "enterprise performance evaluation standard value", and combined with other research results to determine the evaluation standards and evaluation criteria of Yongxing sponge company financial risk early-warning model based on value, and adjust and adjust the distribution proportion at the same time, the adjustment calculation was simplified; and the effectiveness of the financial risk early warning model of Yongxing sponge company test. Finally, construct the financial risk early wa rning model is applied in Yongxing sponge company’s risk assessment that 2012 to 2015 the financial risks of the company respectively in the conclusions of the moderate warning, severe warning, moderate warning, moderate warning, and for the company to the risk prevention measures for the company fire in addition to potential financial risks to ensure the healthy and stable development of the company.The results of this study not only of Yongxing sponge, the efficacy coefficient method is used to build model of financial risk early warning to prevent financial risk has important significance, and to other polyurethane foam enterprise implementation of financial risk early warning also has a certain reference value.