The Improvement And Application Of Efficacy Coeffi Cient Method In Corporate Financial Crisis Early Warning

In today's increasingly complex market structure,there are significant uncertainties and complexity in the economic environment faced by enterprises,and enterprises may fall into the possibility of financial crisis at any time.Once caught in a financial crisis,it will cause heavy losses to all parties in the enterprise.Both the enterprise itself and its stakeholders need to pay attention to the financial situation of the enterprise and make reasonable analysis for financial crisis early warning.Current research on enterprise financial crisis methods focused on empirical analysis to establish models,the operation is complicated and not suitable for the daily early warning activities of enterprises.Compared with traditional methods,the efficiency coefficient method is not only easy to operate,but also can comprehensively reflect the financial status of the enterprise and improve the accuracy of early warning.Therefore,it is widely used in financial crisis early warning.However,there are also limitations such as the selection of indicators limited to static indicators.Based on this,this article will improve the efficiency coefficient method and apply the improved method to the financial crisis early warning analysis to improve its scientificity and effectiveness.This article takes Wuhan Fangu Electronic Technology Corporation which belongs to the communication equipment manufacturing industry as an example.The industry has high risks due to the characteristics of large capital investment and long recovery time.Therefore,it has important significance to apply effective financial crisis early warning analysis on it.Based on the characteristics of communication equipment manufacturing industry,this paper uses the improved efficiency coefficient method to analyze the financial crisis early warning of Wuhan Fangu.Firstly,through combing the related literature on financial crisis early warning,the concept of corporate financial crisis and its early warning are defined,at the same time introduce the theoretical foundation of enterprise financial crisis and the basic efficacy coefficient method Principles,characteristics and applications.Secondly,in view of the shortcomings of the traditional efficiency coefficient method in the financial crisis early warning,combined with the characteristics of the industry,it puts forward some suggestions,adding the cash flow index,using AHP to give weight for index,optimizing the calculation method of single score value,redistricting the division of warning intervals.In this way,it can build a financial crisis early warning model for communication equipment manufacturing.Thirdly,apply this model to the financial crisis early warning analysis of Wuhan Fangu and give some countermeasures.According to the results,it can be seen that financial situation of Wuhan Fangu has declined for four years since 2014,and in 2017 It fell to the bottom of the year and was caught in financial crisis,but the situation began to improve in 2018.Finally,the effectiveness of the improved method is verified by comparing the evaluation of the application of the efficiency coefficient method before and after the improvement in financial crisis early warning.The improved efficiency coefficient method has higher sensitivity due to the adjustment of index and weight.And the introduction of AHP can confirm weight distribution according to the characteristics of the industry,which makes the efficiency coefficient method more suitable for specific industry companies.In addition,the calculation of the standard value has been optimized with the help of the“Enterprise Performance Evaluation Standard Value”,the improved method can more truly response the contribution of indicators to the comprehensive score.This artical uses the improved method to construct a financial crisis early warning model which applied to communication equipment manufacturing enterprises,on the one hand,it improves the accuracy of financial crisis early warning,on the other hand,on the other hand,it allows enterprise to take timely response measures to reduce losses caused by financial crises.