Research On Early Warning Of Financial Risk Of H Company

China is a large producer and export volume of refractory materials,but since the implementation of the "13th Five-Year Plan" supply-side structural reform policy in 2016,under the pressure of de-capacity,destocking and environmental management,glass,cement,steel and other downstream industries have been restricting production and reducing production.In addition,with the outbreak of the new global coronavirus outbreak in 2020,downstream industry export business was affected,the above situation objectively reduced the demand for refractory materials,resulting in structural overcapacity.H refractory materials company as a medium-sized enterprises producing and selling refractory materials for steel,in recent years also faced with such as high asset-liability ratio,inventory turnover decline and many other problems caused by the rise in financial risk level,but the current financial risk early warning method of enterprises there are serious defects,in order to implement monitoring and quantify the company's existing financial risks,to prevent financial risks before they appear,H companies need to use appropriate financial risk warning methods to quantify the degree of risk,therefore,In this paper,the H company to carry out financial risk early warning research,in order to prevent and control financial risk.This paper first summarizes and collates the literature on financial risk early warning at home and abroad,understands the research framework of domestic and foreign research gaps,and then introduces the relevant concepts and theoretical basis.Through the analysis of the financial status quo of H-refractory materials company,the financial risk situation is identified,but because of the shortcomings in the company's financial risk early warning,it is not possible to measure the degree of financial risk,so the risk is quantified by reference to the financial risk warning method based on the efficiency factor method.First of all,the use of entropy method and combined with the relevant coefficient analysis method for the empowerment and screening of indicators,H company's financial risk early warning index system,the use of efficacy factor method to calculate the company's financial risk level in each year,the H company's financial risk level formed a quantitative evaluation,which obtained the 2020 financial risk performance as a light warning level,and then combined with the evaluation results of various indicators,The financial risk situation of H company in 2015-2020 was analyzed comprehensively to find out the causes of risk and put forward the risk prevention and control measures applicable to H company.In this paper,the efficacy coefficient method is used to provide a highly operational method for the financial risk early warning of H-refractory materials company,and it is hoped that this study can meet the needs of corporate risk management,help improve the company's risk-averse ability,and also hope to have some help and reference value to the stakeholders of H company.