Xinjiang Machinery Research Institute Co., Ltd. is a listed company focusing on the manufacturing of agricultural machinery and aviation equipment. Up to now, the company has been a compound enterprise that includes R & D from the source to terminal sales in addition to raw material production. In 2015, Xinyan Co., Ltd. acquired tomorrow aerospace to enter the aviation equipment manufacturing industry. At this point, the company began to change its development focus.

  After the listing of Xinyan shares, it continued to acquire and merge, accumulating a large amount of goodwill. Due to the decline of share price and the decline of sales performance year by year, the profitability of Xinyan shares continued to decline. After a large number of goodwill impairment and bad debt losses were accrued in 2019, the enterprise's financial problems were further exposed, such as unreasonable product structure and high financial expenses. Using the Z-score Model to judge the financial situation of Xinyan Co., Ltd. in the past five years, it is found that the company's Z value is declining and in the "gray zone" in 2018, The two years 2019 and 2020 are in the "bankruptcy area", which indicates that the financial situation of Xinyan Co., Ltd. is not optimistic. The establishment of a financial risk early warning model in combination with the trend of Z value and its variables can effectively observe data changes, play an early warning role for possible upcoming risks, and enable the company to have sufficient response time adjustment strategies to deal with changes.

  This paper draws a conclusion that Xinyan Co., Ltd. has gradually become a loss making enterprise year after year from the original leading agricultural and animal husbandry machinery company, which is favored by the market. In addition to the national policies and the domestic and foreign market environment, it also invested a large amount of resources into aviation equipment manufacturing prematurely due to its rapid transformation, resulting in the gradual loss of market competitiveness of agricultural and animal husbandry machinery products, while the aviation equipment has not completed the technical accumulation, It is still in the development stage and cannot bring sustainable benefits to the company and drive the development of the company. To solve the above problems, we need to start from the company itself, change the development concept, balance the industrial proportion and optimize the management mode. According to the operation and financial situation of Xinyan Co., Ltd. in recent years, the following suggestions are put forward: 1 Improve the quality of products and services. 2. improve the operation ability of the enterprise. 3. improve enterprise management.