Beifang Huachuang Financial Risk Study - Based On The "Z-Score" Model

Zetian Gao

doi:10.54097/110q7635

Authors

Zetian Gao

DOI:

https://doi.org/10.54097/110q7635

Keywords:

Financial risk; Z-value model; Listed companies.

Abstract

In this context of global economic turmoil, high-tech manufacturing companies such as Beifang Huachuang are facing potential financial risks. Beifang Huachuang company’s financial risk is examined in this study using the Z-Score methodology. By collecting the financial data and related indicators of Beifang Huachuang Company from 2019 to 2023, bringing them into the Z-Score model, and obtaining the specific values, to determine the financial risk level of Beifang Huachuang Company. After calculation, the Z-Score value of Beifang Huachuang indicates that it has low financial risk and is in a safe zone with a solid financial position. Although through the Z-Score model this paper concludes that in these five years, Beifang Huachuang is in a position of low financial risk in the context of the general social and economic environment and peer competition, Beifang Huachuang lacks the stability of market value and total liabilities resulting in an unstable X4 value, and it is the direction of Beifang Huachuang's future improvement to develop its market value steadily and minimize its total liabilities in order to achieve a stable X4 value.

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