Research On Financial Performance Evaluation Of A Electric Appliance Company

The report to the 19 th National Congress of the Communist Party of China（CPC）pointed out that the principal contradiction facing Chinese society has evolved into one between unbalanced and inadequate development and the people’s ever-growing needs for a better life.Home appliance industry is closely related to people’s livelihood.With the upgrading of consumption,home appliance industry has also ushered in considerable development.With the rapid development of the Internet,household appliances are gradually becoming intelligent."new consumption" and "high-end" are also the main innovation directions of household appliances in the current stage.With the outbreak of the epidemic,home appliance manufacturing enterprises have to adapt to the development of The Times to adjust the direction of enterprise development.According to the "2020 China Home Appliance Market Report" released by China Electronics Information Industry Development Institute,pointed out that the retail sales of home appliance market in 2020 decreased by 6.5% compared with last year;However,due to the epidemic,the proportion of people working at home has increased,and the retail sales of household appliances have increased by 1.85% year on year.Competition in the household appliance industry is becoming increasingly fierce.In the current complex and changeable environment,the financial performance evaluation of representative enterprises in the household appliance industry and the development of enterprises from the financial level will not only help enterprises improve their competitive advantages,but also hope to provide some reference and inspiration for the household appliance manufacturing industry to further meet the needs of people for a better life.Based on the contingency management theory,principal-agent theory,stakeholder theory and system theory,this paper takes A typical company A in China’s household appliance industry as an example to comprehensively evaluate and analyze the reasons for the company’s financial performance through index analysis and factor analysis.First of all,from the enterprise profitability,solvency,growth and operating capacity of four aspects of its financial status analysis.Secondly,with full consideration of the characteristics of the home appliance industry,factor analysis method is used to select12 representative indicators from the indicators reflecting the enterprise’s debt paying ability,operating ability,profitability and growth ability,and conduct A comprehensive evaluation of the financial performance of A electric Appliance Company from 2006 to2020.Thirdly,based on the financial status and performance evaluation of A Electric Appliance Company,the paper makes an in-depth analysis of its financial problems and causes.Finally,starting from the scoring and ranking results of performance evaluation,the financial performance reflected by specific factors and the reasons are deeply analyzed,and combined with the enterprise’s own conditions,put forward countermeasures and suggestions to optimize its financial performance.Through research,it is found that company A’s financial problems in recent five years are mainly manifested in the following four aspects: downward trend of net sales margin,excessive proportion of single business sales revenue,insignificant effect of business diversification,and gradual increase of operating costs.The main reasons for the problems are the lack of profit growth,the limited development of core business,continuous setbacks in business diversification,and the difficulty in compression of operating costs.This paper puts forward optimization suggestions for the follow-up sustainable and healthy development of A,mainly including the need to cultivate new profit growth points,optimize core business industry chain,identify business diversification parties,and accurately control costs.