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JT Credit Risk Measurement Research

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DOI: 10.23977/ferm.2024.070110 | Downloads: 18 | Views: 187

Author(s)

Hu Zijun 1

Affiliation(s)

1 School of Economics and Management, Guangxi Normal University, Guilin, China

Corresponding Author

Hu Zijun

ABSTRACT

Infrastructure construction is not only an important part of China's economic and social development, but also a strong support for the improvement of the well -being of people's livelihood. The 20th National Congress of the Communist Party of China proposes that my country should accelerate the construction of a modern infrastructure system and build a power of transportation.As a leading enterprise in China's transportation construction industry, JT Company is particularly important to do a good job in credit risk. Therefore, in order to reveal its credit status at this stage, this article calculates the Z value of 2018-2022 through the Z-Score model. And using the KMV model to measure the company's default distance from 2021-2022.The model measurement results show that the Z value of JT has continued to be lower than 1.8 in the past five years, and its debt repayment capacity, profitability and operating capacity have declined. In the eighth quarter, the trend of volatility was shown. From this, JT is currently facing a certain degree of credit risk. Therefore, in the future development path, measures such as establishing a risk indicator system, improving risk warning mechanisms, and flexibly using financial leverage can be taken for credit risk management.

KEYWORDS

Credit risk; Z-Score model; KMV model

CITE THIS PAPER

Hu Zijun, JT Credit Risk Measurement Research. Financial Engineering and Risk Management (2024) Vol. 7: 65-72. DOI: http://dx.doi.org/10.23977/ferm.2024.070110.

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