Early Warning Model Of Financial Risk Of K Company Based On Efficacy Coefficient Method

With the transformation and upgrading of the domestic economic strategy,the disappearance of the original cheap labor force and the continuous impact of COVID-19,the manufacturing industry is facing development opportunities and risks.As an important industry to promote national economic growth,the home appliance industry is also facing severe risk management problems and development crisis due to the impact of traditional production mode,product homogenization competition,consumer demand upgrading and environmental protection policies.At this time,perfect risk early warning mechanism,sound risk management system,high-quality risk prevention awareness of employees and targeted risk management measures can improve the resistance and development ability of enterprises in risk dilemma and guide peer enterprises to go steady and far.In this thesis,Company K,the former leading enterprise in the home appliance industry,is selected as the research object,and the financial indicators are selected for the financial statements from 2016 to2020,and 17 financial indicators are initially selected,and 12 financial risk warning indicators are screened out through SPSS correlation analysis.At the same time,we analyze the causes of financial risks of Company K by combining the macroeconomic environment,national policy support limitations,product technology innovation,industry competition and other influencing factors.Starting from 2011,Company K had accumulated losses of 7.2 billion yuan and turned them into profits of 0.92 billion yuan in 2016;after that,it continuously carried out industrial transformation and technological upgrading,and expanded its supply chain management business and environmental protection business to create a large amount of operating income for the company.However,high operating income is not accompanied by high net profit growth.By calculating the weight of each indicator through the entropy value method,combining the actual value and the "Enterprise Performance Evaluation Standard Value" of the home appliance industry,and applying the efficacy coefficient method to calculate the score of each indicator and the comprehensive score,it can be seen that the risk assessment level of K Company from 2016 to 2020 is "medium alert ","light alarm","medium alarm","medium alarm","medium alarm","medium alarm".The early warning results indicate that K has the following risk problems: there are gaps in risk management and early warning prevention;poor inventory management and unfavorable accounts receivable management;single financing method and high debt service pressure.Based on the principle of comprehensive and operable early warning,we propose an effective risk management system and early warning mechanism for Company K.This will provide theoretical reference and practical guidance for peer companies to build risk warning models.