Research On Haier's Financial Performance Based On Entropy Method

Manufacturing industry is the main part of the national economy,and home appliance industry is an important pillar industry in our national economy.China's household electrical appliance industry has always been a hot industry of public concern.It has played an important role in expanding domestic demand,promoting employment,ensuring people's livelihood and earning foreign exchange through exports.In recent years,China's economy has continued to decline,the channels have gradually changed in depth,the consumption classification has become increasingly serious,the market share of high-end brands has been increasing,the competitive environment in the middle and low-end markets has become more complex,the overall growth of the household appliance industry is facing a ceiling,and the market has entered a consolidation period.In addition,with more and more market entrants such as Xiaomi Company,the operating pressure and competitive pressure faced by major power companies are also increasingly fierce.Good financial performance level is one of the core advantages of an enterprise.We can judge its current management situation by analyzing its financial performance.Financial performance analysis can test the strategic direction and operational timeliness of an enterprise,reflect the problems existing in its financial management,promote the improvement of its organizational capacity,focus on its advantages accurately and quickly,and strengthen its competitiveness.Analyzing the financial performance of representative household electrical appliance enterprises and finding ways to improve their financial performance can contribute to the sustained and healthy development of the household electrical appliance industry.Qingdao Haier Co.,Ltd.(hereinafter referred to as Haier Co.,Ltd.)is a well-known international enterprise that has been established for a long time,with a standardized and reasonable corporate governance structure and a more scientific and perfect management system.It has witnessed the decline of the household electrical appliance industry and is still in the leading position in the household electrical appliance industry.Its financial performance management is also constantly innovating and developing to adapt to the changes of the times,and its development process is very similar and closely related to the development process of the whole household appliance industry.Therefore,Haier Company is chosen as a representative case study in this paper.The writing purpose of this article mainly includes the following two aspects.The first aspect is to explore how to establish a more objective,feasible,scientific and reasonable financial performance evaluation system for household appliance enterprises.The second aspect is to select Haier Company as a research case based on the established financial performance evaluation system of household electrical appliance enterprises,hoping to make a contribution to the theoretical research of financial performance evaluation of household electrical appliance enterprises and find out the deficiencies in Haier Company's ownfinancial management,so as to reflect the common problems existing in the household electrical appliance industry and provide some reference for other household electrical appliance enterprises to find ways to improve their own financial performance.Through reading the literature,according to the principle of selecting corresponding financial performance indicators,combined with the growth track and development characteristics of the household appliance industry,the author designs a set of financial performance evaluation index system for household appliance enterprises from the perspectives of profit,operation,development,debt repayment and cash.According to Haier's annual reports from 2014 to 2018 as longitudinal comparison data,the objective entropy method is used to weight the selected indicators,to make longitudinal comparison of Haier's financial performance,and to analyze the reasons affecting its financial performance.Furthermore,taking the 2018 financial reports of 24 home appliance listed companies as horizontal comparative data,the entropy method is used to weight the selected indicators again,and the industry horizontal comparative analysis of Haier's financial performance is conducted to obtain a comprehensive financial performance.The analysis found that the enterprise financial performance evaluation system constructed by entropy method is reasonable,feasible,scientific and effective,and the evaluation results show the comprehensive ranking of listed companies' financial performance,which can provide certain investment decision-making basis for investors.