Research On Financial Risk Evaluation Of M Company’s Light Asset Operation Based On Entropy Weight TOPSIS Method

With the development of Chinese market,the asset-heavy model leads to the decline of clothing enterprises’ performance,inventory backlog,slow return of capital and other problems,many clothing enterprises’ development is very difficult.Although clothing enterprises have come into high and new technology,research and development innovation,but still use heavy assets operation mode,by expanding the procurement and production to enhance the overall management,spread money in research and development,procurement,production,management,it is difficult to form the core competitiveness,any link problems could lead to a enterprise capital chain rupture,Such a heavy asset operation model exposes more problems.The asset-light mode focuses on product marketing,patented technology and other work,and outsources other work with low added value to build core competitiveness.The products and services brought by this mode are more in line with the current market demand.Although the asset-light operation mode can create higher value for the company,some companies have exposed obvious disadvantages after adopting the asset-light operation mode,for example,it is difficult to mortgage loans due to the low proportion of asset-heavy,and the financing structure is single,which may lead to financial risks.Based on the emergence of such problems,the financial risk problem under the asset-light mode needs to be studied.Therefore,this article selects in the garment industry M company as the research object,based on the fundamental financial characteristics of the M and light asset characteristics,through the financial statement analysis is used to identify the risks in investment,financing,operation,use of entropy TOPSIS method,empirical analysis from the four level 12 indexes for risk assessment system build,Longitudinal risk assessment was conducted on the data of M Company from 2017 to 2021,and 32 clothing brands in the same industry were selected for horizontal risk assessment.It is found that M company has problems such as single financing structure,poor long-term and short-term solvency,unclear investment project planning,large inventory scale and low inventory management efficiency.The entropy weight TOPSIS method was used to evaluate and draw a conclusion: the financial risk of M company increased year by year from 2017 to 2020,and the financial risk decreased in 2021,but the overall risk was large.The results of risk ranking of 32 clothing companies show that the financial risk of M company is higher in the domestic clothing industry in 2021,and the financial risk is far more than that of companies in the same industry.Such development will be unfavorable to M company.Therefore,this paper puts forward the prevention and control suggestions: diversification of financing methods,rationalization of debt structure,strengthening supervision of investment projects,optimizing inventory management and supply chain management.The research direction of this paper is innovative to some extent.Previous studies on asset-light mainly focus on performance and strategy,while the research direction of this paper is financial risk.At the same time,the garment industry as the research object of the case is also less.It is expected that this study can provide reference for M Company and other clothing companies to control financial risks in the complex and changing market background of the clothing industry.By strengthening the understanding of asset-light and controlling the company’s financial risks,it will contribute to the sustainable development of China’s traditional clothing industry.