China Coal Energy Company Limited Study On Financial Risk Early Warning

With the continuous development of our industrial development,coal energy in our industrial development history of the position of the more important.However,in recent years,the coal industry is faced with the challenges of supply and demand imbalance,cost surge,green production environment requirements and other issues.The industrial transformation brought by policy changes and the sound development of downstream enterprises makes coal enterprises have to achieve the high standard of progress while maintaining stability.Moreover,coal enterprises have a long construction cycle,high investment demand,and are prone to financial risks.The coal industry must take effective measures to strengthen early warning management and improve efficiency to ensure its sustainable development.As a leading enterprise in the coal industry,China Coal Energy has a certain representation in the study of financial risk early warning.In this paper,China Coal Energy company limited and its financial risk early warning work are deeply discussed,in order to establish a suitable model for the enterprise,in order to help the enterprise better cope with the financial risk,to ensure its stable development.Based on domestic and foreign scholars’ research results on financial risk issues and their early warning,this article builds an effective financial risk warning model based on the actual situation of China Coal Energy company limited and combined with the entropy value method and efficacy coefficient method.In order to better control and manage the enterprise may encounter risks in the future.First of all,through the analysis of the policy,economic environment,and green technology research and development and introduction of the enterprise,we can have a preliminary understanding of the environment of the enterprise.Secondly,by analyzing the financial data of the enterprise in the past five years,the current financial risk management problems are identified.Thirdly,based on the financial data of the enterprise in recent 5 years,this paper starts with 19 items from 4 aspects of profit,debt repayment,operation and development,uses entropy method and correlation analysis to select and empower these important indicators,so as to construct a financial risk early warning index system of China Coal Energy company limited,so as to better predict and control financial risks.The scoring results in the past 5 years were calculated by the efficiency coefficient method and evaluated systematically.Finally,based on its background as a state-owned enterprise,this paper puts forward effective protection suggestions from improving employees’ risk awareness to improving the early warning system,in order to realize the sustainable development of the enterprise in the future.