Research On The Development Trend Of Clothing Industry Based On The Performance Of Listed Companies

The clothing industry has a pivotal position in China's industrial sector.In the current economic environment,the clothing industry with low profitability and backward industrial structure is in the face of a period of transformation opportunities.Enterprises have begun to actively expand their business scope,and are no longer limited to clothing manufacturing and foundry business.Instead of it,they take diversified operations.In addition to product development and production line extension,a considerable number of companies have begun to engage in cross-industry operations in the non-clothing industry.The purpose of this study is to analyze the current behaviors of representative clothing enterprises,summarize the development trend of the clothing industry and provide suggestions for the future development of clothing enterprises.This paper selects clothing enterprises operating in Shanghai and Shenzhen Stock Exchange from 2013 to 2017,and conducts research based on their public enterprise materials and financial data.Firstly,it sorts out the operating status of relevant listed companies within five years,and analyzes the current situation of the business according to the changes in the major categories of the industry,and summarizes the various business development paths of the listed companies in the apparel industry.Secondly,based on the factor analysis method,a total of 11 financial indicators is selected,including the debt asset ratio,the tangible net debt ratio,the rate of return on total assets,the ROE(Rate of Return on Common Stockholders' Equity),the ROA(Return on Assets),the return on invested capital,the growth rate of total assets,the ROIC(Return on Invested Capital),the SGR(sustainable growth rate),current assets turnover rate,and total asset turnover rate.From the four aspects of solvency,profitability,development capability and management ability,the paper evaluates the performance level of the company comprehensively and gives corresponding rankings.What's more,the company's ranking changes are analyzed in time series,which can be used to represent the profitability of the company and the performance evaluation.There are Enterprises in a positive trend during the year on behalf of better operations,and those have a non-positive trend in performance on behalf of dilemmas and risks over the past five years.Then,the paper analyzes the evidence of various types of business operations.At last,from three aspects including the industry penetration,production line development,industry,the paper discussed the development trend of the diversified operation of the clothing industry and its risks.According to the analysis in this research,under the performance evaluation system constructed in this paper,the negative performance of cross-industry operations of listed companies is more than positive performance.Also,companies in single industry perform better.It is better to focus on the main business in the current stage of the clothing industry.