Research On A Coal Company’s Financial Risk Early Warning Based On Cash Flow

In recent years,the development of China’s capital market has gradually accelerated,the managment and financial environment of various companies has become more complex,and the coal industry,as one of China’s national pillar industries,has faced increasing financial risks in the production and operation process.How to improve the company’s resistance The ability of risk to adapt to changes in the general social environment is a serious problem and a huge challenge faced by company management.In the company’s operation and management process,cash flow shortage is a very common and important factor in the company’s financial risk.Maintaining stable and reasonable cash flow is more beneficial to the company than obtaining excess profits to some extent sustainable development.Therefore,this paper conducts early warning research on the financial risk of A Coal Company from the perspective of cash flow,and aims to provide valuable reference and reference for related research.First,the research background and significance are expounded,and on the basis of summarizing the research status at home and abroad,the research perspective and research content of this paper are proposed.Secondly,sum up the relevant theories of financial risk and financial risk early warning,which lays the theoretical foundation for the establishment of a financial risk early warning model later;finally,using the data of 2013-2019 A Coal Company in recent years,using principal component analysis and efficacy The coefficient method constructs a financial risk early warning model suitable for A coal company,and verifies and analyzes the early warning results.Through empirical research results,this paper draws the following conclusions:(1)The cash flow indicators can effectively early warning the company’s financial risks,then A Coal Company should consider establishing a financial risk early warning model based on the cash flow indicators in order to continuously improve the early warning.The model makes the early warning ability stronger and the prediction result more accurate.(2)The closer to the year when the financial risk occurs,the better the early warning effect of the model and the more accurate the identification of financial risk.(3)The influence of various indicators on the early warning results is different.The cashability and profitability indicators have a greater influence on the company’s financial risk,so the company should pay attention to these two indicators during the development process.Through the research in this article,it is helpful for my country’s coal companies to conduct financial risk early warning research based on a new perspective,and improve the accuracy of financial risk early warning.