The Evaluation To The Finance Of CM Company Basic On Factor Analysis

The scientific and objective evaluation of the enterprise’s financial performance hasbeen praised by the attention of academia and business, especially with the introduction ofstatistical methods to improving and perfecting the evaluation level phenomenon is moreprominent. This paper takes CM Company as a case.，using the factor analysis method toevaluate the financial performance of the enterprise, to find its financial problems and putforward the corresponding improvement suggestions.This paper firstly introduces the background and significance of research, followed by areview of relevant literature, and put forward the research content and method and theinnovation points. Then, analysis the basic financial situation of CM Company. Secondly,carries on the appraisal to the CM Company’s financial performance. The advantages anddisadvantages of the factor analysis and the basic idea introduced, illustrate the rationalityfactor analysis; according to the basic principles of selection of financial indicators, andcombined with the characteristics of industry characteristics of CM Company, construction ofCM Company financial performance evaluation index system; then using the factor analysismethod from the vertical and horizontal aspects of financial performance of CM Companygets the evaluation result. Finally, finds out the existing problems in the management of CMCompany from the result of analysis and evaluation, analysis its causes, and puts forward thecorresponding improvement suggestions to solve the existing problems.The result of this study shows that, CM Company’s return on equity has beensubstantially lower than the industry average, focusing on the analysis of the factors whichinfluence and reason. Through the construction of financial performance evaluation indexsystem of CM Company, using the factor analysis method can objectively evaluate the CMCompany’s financial performance, so as to find the existing problems. And from the lowercosts during the break, coring technical difficulties, making the reasonable main business ofexternal investment strategy and profit ratio good ability, puts forward suggestions on how toimprove CM Company’s financial performance. The result of this study has a certain practicalsignificance for CM Company to improve financial performance, and also provides referencefor the financial performance evaluation of other companies.