Study On Financial Risk Early Warning Of JY Company Based On Efficacy Coefficient Method

Under the guidance of China's national strategy of building innovation,the importance of innovation capability is gradually highlighted.With the rapid development of global economy,the competition among enterprises is becoming increasingly prominent.The development of high-tech enterprises plays a decisive role.Under the regulation and control of national macro policy,China's economic development gradually develops from high speed growth to medium and high speed growth.As the representative of innovative enterprises,China's high-tech enterprises have been constantly improving their overall innovation ability,and the economic benefits brought to the society have been highlighted rapidly.With the strong support of the government's policies,capital,tax reduction and other aspects,China's high-tech enterprises have ushered in the spring of development.However,since the basic characteristics of high-tech enterprises are large investment,high risks in the operation process,high returns in the later stage,and significant ratio of intangible assets,it is not difficult to see that the possibility of high-tech enterprises meeting risks in the operation process should not be underestimated.Therefore,it is very necessary for high-tech enterprises to build an effective financial risk warning system.Scholars have been committed to improving the effectiveness of financial risk warning system.Reading the recent literature shows that the efficiency coefficient is highly favored and can be effectively used in the early warning of financial risks of enterprises.The steps of the efficacy coefficient method are generally as follows: the first step is based on the index standards to be evaluated;the second step is to assign weights to the evaluated indexes;the third step is to use the efficacy coefficient method to score the evaluatedindexes;the fourth step is to obtain the overall score of the evaluated objects.The efficiency coefficient method is not only simple and easy to understand,but also can be combined with the business situation of the enterprise.The efficiency coefficient method is objective,accurate and easy to operate in the early warning of enterprise financial risk.In this paper,the efficacy coefficient method was used to build a financial risk warning model for JY electronics co.,LTD.,to verify the effectiveness of the model and to draw improvement measures to prevent financial risks according to specific problems.Study the existing domestic and foreign literature,understand the financial risk and financial risk early warning research status,and review;Then expound the theory of financial risk,financial risk forewarning and efficiency coefficient method;Then,it introduces the basic situation of JY electronics co.,LTD.,and focuses on the calculation and analysis of the financial status of JY electronics co.,ltd.in the aspects of debt paying ability,profitability,operation ability and development ability from 2014 to2017.Then the improved efficiency coefficient method was used to build an early warning system for JY company,and the early warning analysis was carried out for JY company according to the early warning data.Finally,the paper puts forward some Suggestions for JY company,such as improving corporate governance structure,strengthening the construction of financial risk management system,expanding financing channels,improving operating efficiency and strengthening technological innovation.