Research On Financial Risk Warning And Prevention Strategies Of G Electronics Company

With the development of society,the Chinese household appliance market has entered a stage of stock competition,and home appliance companies need to focus on enhancing product quality,services,and brand development to meet the growing consumer demands.Meanwhile,factors such as the slowdown in macroeconomic growth and tightening real estate policies have had a significant impact on the Chinese household appliance market.However,G Electric Company heavily relies on its core business of air conditioning,and its level of diversification is relatively low.This makes the company vulnerable to market changes and unforeseen circumstances,lacking sufficient resilience.As a result,there are certain financial risks that G Electric Company needs to address.Therefore,it is crucial for the company to strengthen its research on financial risk warning,utilizing warning models to timely identify potential financial risks and take appropriate preventive measures to ensure the financial stability of the company.This paper summarizes and reviews domestic and international literature on financial risk warning and identifies entropy method as a commonly used approach in financial risk warning,while effectiveness coefficient method provides a more accurate assessment of financial risk for enterprises.In practical application,this study focuses on G Electric Company and qualitatively analyzes the company’s financial risks from internal and external perspectives.The current status and challenges of financial risk warning for G Electric Company require further in-depth analysis.By considering the actual situation of G Electric Company comprehensively,we have developed a suitable financial risk warning model for the company.This model comprises indicators related to the company’s solvency,profitability,operational capability,and development capacity,providing a comprehensive reflection of the company’s financial condition.We then apply the entropy method to process the data and combine it with the effectiveness coefficient method for quantitative evaluation.The findings reveal that G Electric Company had a moderate level of financial risk warning in 2020 and 2021.Finally,specific financial risk prevention strategies applicable to G Electric Company are proposed to help mitigate the impact of financial risks.The financial risk warning model and risk prevention strategies developed in this study,which combine the entropy method and effectiveness coefficient method,are expected to provide valuable research ideas and methods for other companies.The aim is to establish a suitable financial risk warning model for their respective companies,enhance risk management awareness and capabilities,and effectively address the impact of financial risks,thereby ensuring the stable development of the enterprises.