What is a univariate early warning model

The univariate early warning model was first proposed by William Beaver. It is a model system to predict the financial crisis of enterprises through the trend change of single financial ratio index. Like multiple early warning models, it belongs to one of the important contents of financial early warning work of listed companies. The advantage of univariate early warning model is simple calculation and operation, but the disadvantage is that the variables involved are too single to fully reflect the operating and financial situation of listed companies.

Financial early warning refers to the process of analyzing and forecasting the company's business activities and financial activities with the help of relevant accounting information provided by the company and using various theories and analytical methods, so as to find out the business risks and financial risks existing in the company.