Research On Financial Performance Evaluation Of Dongfeng Automobile Co.,Ltd.based On Factor Analysis And DEA

The automotive industry is an industry that plays a vital role in the national economy,and the sustainable development of the automotive industry plays an irreplaceable role in promoting and stimulating the development of the national economy.Maintaining a good level of financial performance is the key to improving the company’s competitiveness and sustainable development.This paper focuses on the research of financial performance evaluation of Dongfeng Automobile Co.,Ltd.and conducts longitudinal and horizontal financial performance evaluation research based on factor analysis and data envelopment analysis(DEA).According to the evaluation results,we can understand the financial performance of Dongfeng Automobile Co.,Ltd.and find its financial problems,and provide corresponding improvement suggestions based on this,so as to provide reference for the company’s management to improve its financial performance.At the same time,other companies in the automotive industry can also use the financial performance evaluation ideas in this article to evaluate the company’s financial performance.In this paper,factor analysis and data envelopment analysis are selected to evaluate the financial performance of Dongfeng Automobile Co.,Ltd.to make the evaluation results more objective and accurate.Firstly,the common factors of output indicators and input indicators are extracted from the original financial indicators of the four dimensions through factor analysis,and then the DEA method is applied to evaluate the financial performance vertically and horizontally,and the financial performance of Dongfeng Automobile Co.,Ltd.and the weaknesses of financial capabilities that should be focused on are obtained through longitudinal analysis.Through horizontal analysis,the financial performance of Dongfeng Automobile Co.,Ltd.financial performance in the industry is obtained.Through the study of the financial performance of Dongfeng Automobile Co.,Ltd.it is found that the overall financial performance of Dongfeng Automobile Co.,Ltd.over the years is average,among which the solvency and operating capacity are relatively poor,and there are slow accounts receivable turnover and poor scale efficiency.The performance of its financial performance is highly dependent on solvency and operational ability.Finally,in view of the problems found in this paper,suggestions are put forward to improve the level of capital management,improve the technical level and control the reasonable production scale range,so as to promote the better development of Dongfeng Automobile Co.,Ltd.The innovation of this paper lies in the longitudinal and horizontal evaluation of enterprise financial performance by combining factor analysis and DEA model,and there are few studies using this method to evaluate the vertical and horizontal financial performance of enterprises.