Financial Risk Evaluation Of JK Corporation Based On Entropy Weight TOPSIS Method

With the continuous improvement of people’s pursuit of spiritual and cultural life and the development of "e-commerce economy" and "short video culture" spawned by Internet technology,the cultural media industry is facing new development opportunities.More and more small and medium-sized enterprises have become part of the cultural media ranks,and many listed companies have joined across the bank,which not only stimulates the enthusiasm of enterprises,but also brings unprecedented competition pressure,and the financial risks faced by enterprises will also vary with the environment.increase with changes.Therefore,scholars pay more and more attention to the related research of financial risk.After sorting out relevant literature and related theories at home and abroad,this paper adopts the method of combining the entropy weight TOPSIS method and the F-score model test,and selects JK Corporation,a cultural media enterprise,as the research object.Carry out financial risk identification from four levels and growth risk,and conduct a preliminary analysis of its possible specific risks;secondly,16 evaluation indicators are selected to construct an evaluation system,and the steps of the entropy weight TOPSIS method are used to calculate the financial risk of JK Corporation in the past five years.Finally,the obtained risk results were tested with the F-score model.The experimental results show that the financial risk of JK Corporation has increased year by year in the past five years,and the financial situation is worrying.In general,the main factor that leads to the increase of JK Corporation’s financial risk is investment risk.Indicators worthy of attention include return on equity,return on invested capital,and growth rate of net assets.Specifically,the increase in the financial risk of JK Corporation is closely related to the impairment of goodwill caused by the large-scale purchase of long-term equity investments by the company.In addition,factors such as the turnover rate of JK Corporation’s accounts receivable and the high volatility of expansion scale also directly exacerbate the financial risk.On this basis,although JK Corporation has also taken measures such as strengthening the control of subsidiaries,equity pledge,and diversifying business directions to reduce financial risks,they have not achieved significant results.Therefore,this paper analyzes and quantitatively evaluates the financial risks of the successfully transformed JK Corporation under the background of the traditional chemical industry,hoping to put forward effective opinions for the control of financial risks of JK Corporation,and also provide reference and guidance for the same type of enterprises in the industry.