Financial Analysis Of Tongli Cement Stock Based On Factor Analysis

How to evaluate the financial situation of enterprises scientifically and objectively has always attracted the attention of academia and business circles,especially by introducing statistical methods to improve and improve the evaluation level.This paper takes Tongli Cement Stock as the case study object,through the construction of the company's financial evaluation index system,uses factor analysis method to evaluate the financial performance of Tongli Cement Stock,and finds the existing problems,and puts forward corresponding improvement suggestions accordingly.Foreign researchers began to introduce factor analysis in financial analysis in the19 th century.Domestic researchers have gradually used this method in financial analysis in recent years.In this paper,factor analysis method is used for financial analysis of Tongli shares.The research methods used include literature review,comparative study and case analysis.Firstly,this paper has a preliminary understanding of the current situation of the company from three aspects: the current situation of the company's profit and loss,the current situation of the structure of operating income and operating cost,and the structure of organizational personnel.Secondly,it conceives the financial evaluation system of Tongli Cement Stock Company,which introduces factor analysis method.In order to explain why factor analysis method is introduced in this paper,it not only introduces the basic idea of this method,but also compares the advantages and disadvantages of factor analysis method with traditional financial analysis method(Dupont analysis method is selected in this paper).Thirdly,the horizontal analysis of 17 enterprises in the same industry and the vertical analysis of financial data of Tongli shares in recent five years are carried out.Finally,according to the results of factor analysis and comparison,we find out the financial problems and the causes of the problems are: unreasonable proportion of main business,poor profitability of cement business,excessive debt of enterprises,unreasonable capital structure and weak growth ability of enterprises.The research results of this paper show that the short-term solvency of Tongli Cement Stock is lower than the average value of the industry for a long time.Based on this result,the influencing factors and the underlying reasons are analyzed emphatically.The following suggestions are put forward: reasonable proportion ofmain business,improving profitability of main business,strengthening inventory management,scientific borrowing,optimizing capital structure and strengthening strategic management,so as to promote enterprises to be able to Sustainable and healthy development,five suggestions for improvement.The results of this study have a certain theoretical and practical significance for the management of Tongli Cement Stock,and also provide a reference for the evaluation of other enterprises in the same industry.