Research on Financial Risk Evaluation of Internet Technology Industry Based on Entropy Weight Method—Taking Xiaomi Group as an Example

With the rapid development of China’s economy, the Internet technology industry has become one of the strategic pillar industries in China, and it is a growth engine that stimulates high-quality development of China’s GDP. The operating environment of internet technology is complex, and efficient financial management models are indispensable for enterprises to have a place in a complex and fiercely competitive market. Carrying out financial risk control work is of great significance for avoiding operational risks. It can stabilize corporate financial activities, accelerate capital turnover, ensure the safety and integrity of funds, provide important basis, improve the scientific and effective decision-making of enterprises, and provide data and information support for business decision-making in the process of enterprise development. As a rapidly growing unicorn company after the financial crisis, Xiaomi has successfully resolved various financial risks and continued to grow, becoming the youngest Fortune 500 company in the world. This article takes Xiaomi Technology Co., Ltd. as an example and uses the entropy weight method (EWM) to assess the financial risk of Xiaomi Group. Through the analysis of the results of Xiaomi Group’s financial risk assessment, it provides effective reference for the future development of the enterprise and lays a foundation for the long-term development of the industry.