Study On Financial Performance Evaluation Methods Of Listed Companies In The Texitle And Apparel Industry

Financial performance evaluation method has always been a hot spot in the field oftheory and practice. Foreign studies on financial performance evaluation indicators havebeen through four stages: observation statistics financial performance evaluation, the costperformance evaluation, the financial performance evaluation and value financialperformance evaluation and so on. The wal-mart evaluation method, du pont analysis, EVAand BSC method are representative financial performance evaluation methods during thisperiod. Domestic financial performance evaluation methods have experienced threechanges under the lead of Ministry of Finance. A fairly complete financial performanceevaluation system is stated owned capital evaluation system of1999which has greatlyinfluenced domestic financial performance evaluation methods. According to previousstudies on financial performance evaluation indicators home and abroad, relevant principlesof selecting financial indicators, and characteristics of the textile and apparel industry, thepresent study establishes a financial performance evaluation indicator system, includingprofitability, solvency, developing capacity and operating ability. This paper takes70non-ST listed companies in textile and apparel industry in Shanghai and Shenzhen stockmarkets as research samples, and selects factor analysis model, entropy method andvariation coefficient method as financial performance evaluation methods. This paperfirstly applies these three methods to evaluate and rank the financial performance of targetlisted companies respectively. It then adopts the theory of serial number summation and themode theory to deal with the results. Next, it adopts the Comprehensive Decision Model ofInterval Number to evaluate and rank the sample companies. It finally takes the ultimaterank as reference to calculate the Spearman rank-correlation coefficient of each evaluationmethod. The study shows that entropy method is better than factor analysis model and variation coefficient method.