Research On Financial Performance Evaluation Of Baotou Steel Stock Based On Factor Analysis

The development of iron and steel industry has a great impact on China’s national economy.The state vigorously promotes various work to make iron and steel enterprises get rid of overcapacity.This measure has obviously improved the market environment and increased the profits of enterprises.However,most of the iron and steel enterprises still have many problems,such as the financing system and management system are not perfect enough,the company’s single way of financing with the help of external forces leads to the unreasonable capital structure,the low efficiency of capital use and the low level of asset management,which leads to the occupation of a large amount of working capital and the high opportunity cost.Therefore,in order to the sustainable and healthy development of the iron and steel enterprises,we should evaluate the financial performance of iron and steel enterprises and find out measures to improve the financial performance.Baotou Steel Co.,Ltd.is a steel listed company in China.It has a large supply to the domestic steel market and plays an important role in the domestic steel market.How to improve the financial performance of the enterprise better and faster has become the difficulty and key point that must be solved in the process of enterprise development.This paper uses the factor analysis method in SPSS analysis software to evaluate the financial performance of Baotou Steel Co.,Ltd.,and collects the financial data of 26 A-share listed companies in 2018.Through the processing of this data,we can get the comprehensive score and ranking of financial performance.We can see that the laggard ranking of Baotou steel shares in the industry is mainly affected by its solvency and operating ability.Based on this result This paper focuses on the analysis of the debt paying ability and operation ability of Baotou Steel in 2016-2018,and compares it with the top three enterprises in comprehensive performance,then analyzes the influencing factors of Baotou Steel’s financial performance,and determines that the main reasons are: single financing mode,large dependence on bank borrowings and short-term debt preference,slow inventory turnover speed and low use efficiency of fixed assets.Then according to the actual situation of Baotou Steel,the financial performance level of Baotou Steel will be improved by widening financing channels,establishing capital structure monitoring system,adjusting debt structure,strengthening inventory management and fixed asset management.