Financial Risk Prediction Of H Company Based On Efficacy Coefficient Method

In recent years,with the increasing degree of economic globalization,China's photovoltaic industry has many opportunities,but it also faces many risks and challenges.After the global financial crisis in 2008 and the "double-reverse" survey in Europe and the United States in 2012,China's photovoltaic industry has experienced great turmoil.PV companies are facing more and more risks.Many companies are neglecting financial risks,and it leads to bankruptcy.Therefore,China's PV companies urgently need to establish and improve the financial risk early warning system to prevent financial risks.This paper takes H company as the research object.Firstly,based on reading the domestic and foreign literature on financial risk early warning theory,it compares the construction methods of each financial early warning system,and selects the efficiency coefficient method suitable for H company,which is relatively simple and easy to learn.At the same time,the efficiency coefficient method is improved and optimized.Secondly,through the horizontal and vertical analysis of the main financial data and indicators of H company in the past five years,combined with the environment of the photovoltaic industry,it is found that H company has great risks in four aspects of financing,investment,capital operation and internal control.According to the financial status of H company,this paper constructs a financial risk early warning system based on the efficacy coefficient method.The early warning results show that H company has huge risks in terms of debt repayment,profit and development ability,which is consistent with the actual operation status of H company.It indicates that the early warning system is operating effectively.Finally,this paper puts forward the risk response measures for improving the internal control,optimizing the financing structure,strengthening the management of accounts receivable and improving the innovation ability for the risks faced by H company.It is hoped that the financial risk early warning system based on the efficacy coefficient method constructed in this paper can help H companies and other PV companies to improve their financial risk prediction capabilities.