Research On Financial Risk Early Warning Of Goody Science & Technology Co.,Ltd.

In recent years,with the development of urbanization in China and the transformation of urban pipeline network infrastructure,due to its characteristics confirm to the needs of sustainable development and energy conservation and emission reduction,the plastic pipe industry has been developed rapidly by the promotion of national policy.At present,the plastic pipe industry is in a perfectly competitive market.In such a market environment,how to identify effectively and guard against the potential financial risks is the key for companies to keep a sound momentum of development.As a plastic pipe manufacturing company,in order to make higher profits in the fierce market competition,Goody Technology Company should timely find and prevent its potential financial risks,so as to maintain the good operation of the company.The thesis with regard to Goody Technology Company as the research object,through the data of the financial reporting to understand the company’s basic situation and the status of the financial risk firstly.Then based on the leverage analysis results and found that the company’s leverage coefficient is on the rise,which suggests that the financial risk is increasing and the company should raise the level of attention to the financial risk,so as to establish the financial risk warning system that based on efficacy coefficient method.Through the application of the system,this thesis takes the early warning results in 2018 and 2019 as an example and combines with the company’s operating status in that year to verify the effectiveness of the model.The application results show that the early warning results from 2015 to 2019 are medium,medium,light,heavy and medium warning respectively.And based on the forecast data of 2020,the financial risk level is calculated as medium warning.In view of the existing problems — the rising price of raw materials,the decrease of the turnover capacity of accounts receivable,the tightening of financing channels and the reduction of profitability,the thesis focuses on the optimization from the aspects of cost control,accounts receivable management,debt structure adjustment,business plans formulation and risk early warning guarantee.This thesis enriches the relevant methods of financial risk early warning and case research of plastic pipe industry,hoping that the suggestions of this research can provide references for Goody Technology Company to prevent potential financial risks,while also play a referential role for the financial risk early warning of plastic pipe industry.This thesis has fourteen charts,forty-five tables and fifty-six references.