It has become urgent to find a solution for the problem of how to use the financial risk early warning system to effectively evaluate the financial risk of enterprises and determine whether the risk threshold is standard across different industries (Lei, Menghao, & N, 2021). This paper applies the Z-Score model and focuses on the medical device industry. Using a total of 48 listed companies on the Science and Technology Innovation Board as observation samples, empirical analysis of the companies’ financial risks is conducted in addition to establishing a more reliable and practical financial risk early warning model suitable for the medical device industry. APT Medical and Endovastec were selected as observation samples, followed by an empirical analysis using traditional indicators and the Z-Score model. The results show that the applicability of the Z-Score model to a certain company in financial risk early warning is low. Furthermore, the threshold of the financial risk early warning model should be dynamically adjusted according to various industries to assist enterprises in realizing the financial risk crisis in time to take adequate measures. (Lu & Zhan, 2018)

Fengtao Li. A Z-score-based early warning study of financial risk in the medical device industry. Academic Journal of Business & Management (2023) Vol. 5, Issue 5: 127-132. https://doi.org/10.25236/AJBM.2023.050518.

[1] Zhu, L., Li, M., & Metawa, N. (2021). Financial Risk Evaluation Z-Score Model for Intelligent IoT-Based Enterprises. Information Processing & Management, 58(6). https://doi.org/10.1016/J.IPM. 2021. 102692

[2] Lu, B., & Zhan, Z. (2018). Research on the Construction of Financial Risk Warning Indicator System. Economic and Management Sciences. https://kns.cnki.net/kcms2/article/abstract?v=YhL_Bl4Xt C7yyLQqjQmWvQGFaHRks9Y7SOWWZUanCg41nxuWj9H5mjnrSEG07A7kkcVjXoKQXHCRjw9wBUEcAU5--DJb_H00l1m1IbFb3pM%3d&uniplatform=NZKPT

[3] Moreno, I., Parrado martínez, purificación, & Trujillo ponce, A. (2021). Using the Z-Score to Analyze the Financial Soundness of Insurance Firms. European Journal of Management and Business Economics, 31(1), 22–39. https://doi.org/10.1108/EJMBE-09-2020-0261

[4] M.m., S., K.b., A., & M.m., S. m.m. (2021). A Study on the Financial Soundness of Indian Automobile Industries Using Altman Z-Score. Accounting, 7(2), 295–298. https://doi.org/10.5267/J.AC.2020.12.001

[5] Wilson, A., & E. lange, D. (2015). Univariate Analysis of Variance for Repeated Measures. The Journal of Experimental Education, 40(4), 83–85. https://doi.org/10.1080/00220973.1972.11011358

[6] Sari, M., & Diana, H. (2020). Analisis Rasio Keuangan Untuk Memprediksi Kondisi Financial Distress Perusahaan Pulp Dan Kertas Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017 Dengan Model Altman Z-Score. Race and Justice, 1(1), 32–48. https://doi.org/10.37385/raj.v1i1.32

[7] Chang, Y. (2011). Research on Applicability of Z-Score Financial Pre-Warning Model in China. Economic and Management Sciences. https://kns.cnki.net/kcms2/article/abstract?v=YhL_ Bl4XtC7yyLQqjQmWvZcpLx6KkixXsiOnxUTwPa97sPpJmsuT4d-TkBgAg3YM-1fBXL4iC_azDaB1O1 Wy3H39K7p3n1oW&uniplatform=NZKPT

[8] Maresova, P., Penhaker, M., Selamat, A., & Kuca, K. (n.d.). The Potential of Medical Device Industry in Technological and Economical Context. Therapeutics and Clinical Risk Management, 11, 1505–1514. https://doi.org/https://doi.org/10.2147/TCRM.S88574

[9] Chang, Z. (n.d.). Solvency Analysis of Chinese Railway Construction Listed Companies. Advances in Economics, Business and Management Research. https://doi.org/10.2991/ICFIED-19.2019.9

[10] Yash, L., & Vasanti, S. (2021). GLOBAL OUTLOOK ON MEDICAL DEVICE INDUSTRY. International Journal of Pharmacy & Pharmaceutical Science, 1–8. https://doi.org/10. 22159/IJPPS.2021V13I8.41372