A Study On Financial Performance Evaluation Of Steel Industry Based On DEA Model

As one of the basic industries in China,the iron and steel industry has the characteristics of high investment and wide coverage.It is inextricably linked with upstream coal,mineral and other mining industries and downstream transportation,real estate,construction,machinery manufacturing and other important industries.It plays an irreplaceable role in the industrialization of the country and the development of the national economy,and is also an important symbol of a country’s comprehensive strength.But in recent years its earnings have not been very good,this year by the impact of the new crown virus,steel companies will have a sharp decline in financial performance.Therefore,the comprehensive evaluation and research on the financial performance of iron and steel enterprises can not only bring into play the accumulation of performance appraisal extremely oriented role,improve the management level of enterprises,but also can improve the company’s operating conditions and increase its competitiveness in the steel market.Based on the above considerations,this paper chooses Xinxing Cast Pipe Co.,Ltd.(hereinafter referred to as Xinxing Cast Pipe)as the most representative iron and steel manufacturing enterprise as the research object,and constructs the financial performance evaluation system of Xinxing Cast Pipe by combining factor analysis with data envelope to make up for the deficiency of its original system,and then provides a more reliable basis for all stakeholders to make investment decisions.Based on the factors affecting the efficiency of enterprises,this paper establishes an evaluation index system for the efficiency of new cast pipes through DEA methods,and carries out related performance evaluation from two aspects: horizontal and vertical.First,eight indexes,such as current ratio,cash ratio,turnover rate of accounts receivable,turnover rate of total assets,are selected as input indicators,and 10 indexes,such as growth rate of main business income,net interest rate of total assets and net interest rate of sales,are selected as output indicators.From this point of view,the index is extracted by factor analysis method,the common factor is extracted,the above data is processed dimensionless through the selected BCC model,and then according to the performance evaluation index,the transportation is carried out.model analysis of dimensionless data DEA with DEAP2.1software.Evaluate and rank the financial performance of 28 companies listed in the steel industry A shares in 2018 and the financial performance from 2005 to 2018 from the horizontal and vertical dimensions,respectively.Through the validity analysis and projection value analysis of the decision-making unit,it is found that it has the problems of redundant input of operation capacity,insufficient output of production capacity and low comprehensive efficiency value,and that the sensitivity of solvency and development ability to the financial performance of emerging cast pipes is high,which needs to be focused on.