Research On The Financial Performance Of JH Company Based On Factor Analysis

In recent years,China’s economic situation has been in a stable development.Its economic structure and development model have confirmed that the requirements of "new normal" have been adopted step by step,and closely around the core strategy of sustainable development,and all industries have been steadily leaping from high-speed development to high-quality development.Chemical industry,also known as the essential industry of China’s economic growth,has been gradually impacted by the general environment in recent years,fastening the speed of industrial restructuring and embracing opportunities in the challenges.Although the industry revenue slowed down,the whole industry also ushered in new vitality after the pain.In the post epidemic era,the chemical industry has ushered in a new round of expansion.A national chemical corporation named JH Company is the most advanced manufacturing base of fluorine chemical industry located in Zhejiang province.This company has been a pioneer in the industry,and its development and construction process is also very representative of the industry.With the coming of the epidemic in 2020,JH Company is facing many adverse factors such as weak global economy,reverse supply and demand pattern and continuous downward product price,and the overall profit level has declined greatly year on year.Based on JH Company does not have a complete set of financial performance evaluation process at present,so,for JH Company’s current operating difficulties,this paper is going to elaborate on establishing a set of financial performance evaluation standards in order to fit in JH Company’s promising future developing.In addition,the application of this set of standards also helps to analyze the effeciency and accuracy of the corporational financial performance evaluation.It is not only the analysis of its current situation,but also the analysis of its chemical industry.And cited the factor analysis method,not only with the chemical industry related companies to do a horizontal comparison and analysis,but also their financial performance in recent 20 years to do a vertical comparison and analysis.It not only fills in the deficiency of financial performance evaluation of chemical industry,but also ranks JH Company’s financial performance in recent 20 years.This paper analyzes and evaluates the financial performances of the company in order to find out and vouch evidence that reveals the deficiencies existing in JH Company’s management and strategies.Additionally,it provides suggestions along with regulations for future operation actions.Hopefully,initializing financial performance evaluation can also help to analyze information for the development of the chemical industry based on the collection of industrial data as well as attribute to a sustainable and healthy development environment for the industry.