Research On The Financial Risk Of Company Z Based On The Entropy TOPSIS Method

The garment industry has always been an important part of China’s social economy,and many excellent garment enterprises have appeared in China,such as Heilan Home,Jiumuwang and Semir,which belong to well-known domestic enterprises and have strong market competitiveness.However,with the pressure of domestic consumption,the profits of the garment industry are constantly being compressed.In particular,the development of Internet new retail in recent years and the outbreak of the global new crown epidemic will have an impact on the traditional sales model.Garment companies need to pay attention to their own financial risks,improve their own operation and management,and ensure the continuous operation of enterprises.Therefore,enterprises have higher requirements for the control of financial risks.As the COVID-19 pandemic continues,companies that adopt traditional sales models will face a more complex environment.Because Company Z still adopts the traditional sales model and has a certain degree of representation,this article uses Company Z as a research case.This paper refers to the relevant research theories of financial risks at home and abroad and draws on relevant financial risk analysis models,and analyzes the problems existing in the company from four aspects: financing risk,investment risk,operational risk and cash flow risk.From the four dimensions,a total of 16 indicators were selected.The entropy method was first used to empower the indicators,and then ranked by TOPSIS’s nearly 5-year level of financial risk.Analyze the financial risks of Company Z by constructing an objective evaluation model.A study of the financial statements of Company Z leads to the conclusion that the financial risk of Company Z is increasing year by year.This paper combines the characteristics of the industry and the company’s own situation,and makes suggestions for Company Z to control financial risks,hoping to promote the continuous operation and stable development of enterprises and provide reference for companies with similar problems in the industry to control financial risks.