Research On The Financial Risk Assessment Of A Company Based On Efficacy Coefficient Method

Market economy competition is full of variability,and the life of the company appears very fragile in the fierce competition.Many domestic and foreign examples show that if financial risk is not controlled in a timely manner,it will seriously restrict the long-term development of the company.Financial risk is usually caused by a variety of reasons,and its emergence is not accidental.They all go through such stages of development as germination,growth,evolution,appearance,and role.Financial risk is one of the most influential risk types for companies,and it is also a difficult problem that most companies in China need to solve.If the financial risk can not be thoroughly analyzed and effectively evaluated,and then actively take preventive measures,it will lead to financial difficulties and can not be properly operated and developed.In order to prevent the occurrence of financial risk effectively,the company needs to analyze the financial risk according to its current situation,and then design a long-term effective financial risk evaluation method.This paper selects A company as the research object,systematically reviews the relevant research literature at home and abroad,and makes an in-depth study of A company's financial risk evaluation situation based on the actual situation of A company,and then designs a financial risk evaluation method based on the effectiveness coefficient method.In order to help them prevent financial risks.Through literature research,case study and comparative study,we have a preliminary understanding of financial risk evaluation.On this basis,the overall financial situation and business development of Company A and the existing financial risk evaluation methods are introduced first,and the current status of Company A's financial risk evaluation is analyzed from the aspects of funding,investment,operation and development.This paper analyzes and summarizes the problems existing in the original financial risk evaluation method and the causes of the problems.Then,using the principal component analysis method and the efficiency coefficient method,a new financial risk evaluation method is designed based on the industry characteristics of Company A and the ten indicators of the four angles that are important to the company.Based on the financial data of company A in 2016,the financial risk evaluation is carried out,and then the original and new financial risk evaluation methods are compared through comparative analysis to verify whether the newly designed evaluation methods are more optimized.Finally,to ensure the smooth operation of the financial risk evaluation method,safeguards are put forward.Therefore,through the analysis and evaluation of the financial risk of company A,the paper helps it to guard against financial risk,so as to benefit the normal operation and good development of company A,and also provide some reference for other companies in the same industry.