Research On Enterprise Financial Risk Early Warning Based On Entropy Method And Efficacy Coefficient Method

Under the increasingly complex market economy environment,the business activities of enterprises are uncertain,and the financial risks of enterprises inevitably occur.Therefore,it is particularly important for enterprises to carry out financial risk early warning to prevent and control the deterioration of financial risks.At present,many enterprises in my country use simple indicators for financial risk early warning.It is easy to judge the pros and cons of these indicators,which is convenient for small enterprises to use.Since the reform and opening up,my country’s clothing industry has experienced a period of rapid development,which makes most clothing companies pay insufficient attention to financial risk early warning.In 2017,the total output of clothing in my country decreased by 8.5% for the first time.The downward trend from 2018 to 2020 became more and more obvious.The financial risks of clothing enterprises increased,and clothing enterprises were further generated.It is an urgent need to transform from simple financial indicator forecasts to financial risk early warning system research..The efficacy coefficient method is an evaluation method that can convert several types of individual indicators into comprehensive scores.The efficacy coefficient method introduces the entropy method,which can make up for the subjectivity of the efficacy coefficient method in assigning weights to indicators.Using the entropy method and the efficacy coefficient method to construct a financial risk early-warning system,comprehensively judging the overall financial risk status of the enterprise,can provide new ideas and reference values for the financial risk early-warning of the enterprise.Based on this,this paper takes J Garment Company as a case,summarizes the relevant models of financial risk early warning at home and abroad,and combines the relevant theories of financial risk early warning.Explore.First,analyze the current situation of J Company’s financial risk from external and internal perspectives,and clarify the necessity and feasibility of J Company’s establishment of a financial risk early warning system.Secondly,the application of J Company’s financial risk early warning based on the entropy method and the efficacy coefficient method is carried out in detail.That is to say,according to the index selection principle,it is the primary selection index of J company,and the early warning indicators are screened and determined through the entropy value method and correlation analysis,and the entropy value method is used to give weights to the determined indicators,and the financial risk early warning standard value and early warning level are divided to establish early warning.system.Substitute the financial risk indicators of J company from 2016 to 2020 into the early warning system,and use the improved efficacy coefficient method to calculate the five-year financial risk early warning results of J company,and then analyze the results from four dimensions,and propose responses based on the early warning results.measure.Finally,this paper draws conclusions and enlightenments.First,the financial risk early warning model combining the entropy method and the efficacy coefficient method is more feasible;second,the financial risk model based on the entropy value method and the efficacy coefficient method can effectively verify the financial status of J Company.The third is to draw the case enlightenment that enterprises should also take safeguard measures to run the financial risk early warning system.