Financial Risk Evaluation Z-Score Model for Intelligent IoT-based Enterprises

Abstract

• This study mainly discusses the financial risk evaluation z model for intelligent iot-based enterprises. • After analyzing the internal and external risk factors from different sources in combination with the annual report and Industry Report of the Internet of things company, it is found that, At present, the main risk sources faced by Internet of things companies mainly focus on exogenous legal risk, industry competition risk (mainly affected by the external environment) and endogenous tenant credit risk (mainly dominated by their own characteristics). • This study is helpful for IOT companies to reduce the probability of crisis, so as to develop healthily and orderly. Abstract: With accelerating global economic integration processes, the financial risk early warning requirements for companies are becoming higher and higher. This study discusses the financial risk evaluation Z-Score Model for intelligent IoT-based enterprises. The financial risk early warning system of an IoT company is made up of four parts: alarm source analysis, Z-Score Model analysis, and main financial ratio analysis. Among them, the police source analysis is the premise and important guarantee for the operation of the system overall. After analyzing the internal and external risk factors from different sources in combination with the annual and industry reports of the IoT company, we found that the main risk sources IoT companies face focus on external legal risk, industry competition risk (mainly affected by the external environment), and external tenant credit risk (dominated by their own characteristics). Based on analysis of police sources, a Z-Score Model analysis for IoT companies can be carried out. Z-Score Model analysis is the core of the new financial risk early warning system of IoT companies; therefore, an IoT company's long-term solvency is weak. Any IoT company should be committed to diversifying investments and to carefully selecting investment projects. This study may prove helpful for IoT companies in reducing the probability of crises and developing in a healthy and orderly way.