Research On Financial Risk Early Warning Of G Company Based On Efficacy Coefficient Method

With the rapid development of my country’s economy,the market environment has become more and more complex,and the uncertain factors faced by enterprises are also increasing.It is not uncommon for enterprises to fail due to financial crisis.In order to prevent such incidents from happening,enterprises need to establish an effective financial risk early warning model.For G company in the auto industry,the sudden outbreak of the new crown epidemic has had a huge impact on my country’s auto manufacturing industry.As an important industry of the country,the automobile industry is a barometer of China’s economic and market conditions,and its development status represents the trend of my country’s macro economy after the epidemic.Therefore,it is necessary to study and design a financial risk early warning model suitable for G company to avoid the arrival of corporate financial risks in advance.Based on the relevant theory of financial risk early warning,this paper takes G company as the research object,introduces the basic situation,organizational structure and operating performance of G company in detail,and analyzes the financial risk of G company from two aspects:external and internal factors;The importance of the establishment of the financial risk early warning model to the company is expounded.Due to the need to conduct a comprehensive inspection of Company G,from various aspects,based on the selection principle of financial indicators and the evaluation value of corporate financial performance,18 financial indicators were selected for the first time,and the financial indicators were standardized by the entropy method to calculate the financial indicators.The entropy value,differentiation coefficient,and weight of the indicators;then carry out correlation analysis according to the state,and after excluding data with high correlation,11 final indicators are obtained,and finally the weight of financial indicators calculated by the entropy method is used;The coefficient method is used to establish a financial risk early warning model.First,the score of a single financial index is calculated,and then the index category score and comprehensive index score are calculated according to the results of the previous step.Finally,there is a quantitative evaluation of the financial risk early warning level of G company according to the classification;Finally,it can be known that from 2016 to 2020,the financial risk is getting bigger and bigger,and the financial risk level has risen from the light warning in 2016 to the serious warning in 2020.The reasons for G company’s financial risk are expounded in each aspect.Combining the results of early warning with the specific operating conditions of Company G,this paper proposes financial risk control measures applicable to Company G from the following aspects:actively pay attention to industry policy trends and grasp the development trend of the industry;diversify financing and optimize capital structure;Take measures to increase operating income and strengthen cost control;improve the risk early warning mechanism to quickly respond to temporary risks;strengthen the supervision of subsidiaries to avoid internal financial chaos;improve the accounts receivable management system,and take timely measures to recover possible bad debts;Cultivate employees’ risk awareness and avoid risks in advance.