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Academic Journal of Business & Management, 2023, 5(5); doi: 10.25236/AJBM.2023.050518.

A Z-score-based early warning study of financial risk in the medical device industry


Fengtao Li

Corresponding Author:
Fengtao Li

School of Accountancy, Central University of Finance and Economics, Beijing, China


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)


early financial warning, Z-Score model, listed companies, medical device industry

Cite This Paper

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.


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