Financial Risk Assessment of New Retail Enterprises Based on the Entropy Weight Method A Case Study of Bailian Group

Abstract

The digital economy is driving traditional retail businesses to accelerate their transformation. The establishment of online platforms, the conversion of shops into smart stores, and the digital upgrading of supply chains require substantial capital investment, whilst the uncertainty surrounding returns on investment further exacerbates the financial risks faced by these businesses. This study takes Bailian Group as its research subject, selects its financial data from 2020 to 2024, identifies financial risks during the corporate transformation phase from three dimensions—financing, investment, and operations—constructs a financial risk evaluation system comprising 12 indicators, and employs the entropy weight method to conduct quantitative measurement. Research indicates that Bailian Co., Ltd. faces issues such as a short-term bias in its debt structure, insufficient safeguards for short-term debt repayment, low returns on external investments and a sustained decline in asset operational efficiency. The comprehensive financial risk of the enterprise exhibits a phased pattern of initial decline followed by a rebound, with financing risk constituting the primary factor affecting corporate financial security. Accordingly, risk prevention and control strategies are proposed in terms of optimizing capital structure, standardizing the full investment process, and refining operational management, thereby providing practical references for the transformation of other traditional retail enterprises.