Research On Financial Performance Evaluation Of BYD Company Based On DEA-Malmquist Model

The automobile industry is an important basic,leading and strategic industry in China,and has become an important supporting force to promote high-quality development of regional economy.However,in recent years,under intense market competition pressure,various automobile production enterprises have generally faced problems such as low profit margins and urgent need to enhance profitability.The internal and external development environment is becoming increasingly severe,and external competition is becoming increasingly fierce.More traditional automobile industries are facing transformation.BYD,which has a high market value in the industry,is no exception.In recent years,it has shown poor risk resistance,gradually weakened competitive advantage,and the need to enhance profitability.Therefore,conducting a scientific evaluation of BYD’s financial performance,grasping the problems in its development,and proposing suggestions for improvement and optimization have important research value and practical significance.By implementing effective financial performance evaluation and utilizing effective fund management,enterprises can achieve efficient utilization of funds,which contributes to the sustainable development of the enterprise and the achievement of financial goals,and serves as the main reference for financial management.The theoretical core of financial performance is the application of scientific financial data analysis and management techniques to achieve maximum returns on enterprise investment and fund management.This article takes BYD Company as an example to study the financial performance issues of Chinese automobile enterprises,and thus summarizes the research methods for financial performance evaluation that are conducive to the development of the entire industry.This article first elaborates on the background and significance of the research,and then reviews literature on financial performance both domestically and internationally.Based on a review of the development of China’s automotive industry,BYD’s development,and its financial performance,the DEA model and Malmquist index model are used to construct a financial performance evaluation model and input-output indicator system for automotive enterprises,Empirical analysis was conducted on the financial data of 19 automotive listed companies,including BYD,from2016 to 2020.Through the analysis of BYD’s financial performance,the following evaluation results can be obtained: on the one hand,overall,most of China’s automobile listed companies have achieved relatively effective financial performance of DEA from 2016 to 2020,and the overall financial performance of China’s automobile listed companies is relatively good.However,compared to the industry as a whole,BYD’s financial performance level is relatively low,with a significant gap compared to the industry average in 2021.The financial performance gap is mainly caused by a significant gap in pure technical efficiency.On the other hand,the evaluation results based on the Malmquist index model indicate that BYD’s financial performance is on a downward trend,with the largest decline in 2021.The withdrawal of subsidies for new energy vehicles in 2021 has a significant impact on BYD’s financial performance.