Research On Financial Performance Evaluation Of J Thermal Power Enterprise Based On Factor Analysis

With the development of the low-carbon process of "carbon peak,carbon neutral",thermal power enterprises,which has "high pollution、high energy consumption"characteristic,are increasingly paying more and more attention to the issue of carbon compliance.The essence is that the enterprises try to follow a green,efficient.high-quality development model,and the problem of enterprise’s development cannot be separated from efficient operation of capital management.Therefore,the financial performance of an enterprise is particularly important.Financial performance is an important indicator that reflects the core competitiveness and capital utilization rate of an enterprise.As the largest state-owned power generation group in H Province,the financial performance of Enterprise J can reflect the core competitiveness of the enterprise and whether if the capital utilization rate is efficient or not efficient.Factor analysis method is a commonly used method in financial performance evaluation,which has the characteristics of flexible selection and objective evaluation process.Therefore,using factor analysis to evaluate the financial performance of Company J can truly and objectively discover the problems and advantages of Company J’s financial performance,which is of great significance for improving the financial performance of Company J and the power generation industry in H Province,as well as enhancing the company’s strategic operating level.This article mainly conducts a comprehensive analysis of the financial performance of J thermal power enterprise.Firstly,by reviewing relevant literature on financial performance evaluation at home and abroad,we have gained an understanding of the current research status and commonly used methods of financial performance evaluation,and summarized the relevant theories and methods of financial performance;Next,an overview and analysis of the industry development status and company status of J Company were conducted,and a comparative analysis of J Company’s financial status was conducted;In Chapter 4,based on the principles of financial performance evaluation and relevant literature on the performance of power enterprises,13 financial indicators are selected from the four dimensions of profitability,debt paying ability,operational ability,and growth ability to construct a financial performance evaluation system.On the one hand,a horizontal comparison is made with the financial data of 24 companies in the same industry to calculate and rank the financial performance scores of Company J,and on the other hand,a vertical comparison is made between the financial performance of Company J itself,Analyze the changes in the capabilities of various public factors of J Company over the past five years.By comparing horizontally and vertically,comprehensively evaluate the performance level of Company J.Through research,it has been found that compared with other thermal power enterprises,J Company’s financial performance level in the industry in 2021 is relatively poor.From the comparison of its own financial performance from 2017 to 2021,J Company’s financial performance ranking in 2021 is the lowest.From the ranking of various factors,it can be concluded that the main factors that affect the overall financial performance of Company J are the profitability factor and operational capability factor.Through analysis,the sustained high prices of raw materials have a profound impact on the overall profits of enterprises.At the same time,environmental pressure and transformation pressure have continuously increased the cost of enterprises,and the efficiency of the company’s fund utilization is poor.Finally,suggestions are given for J thermal power enterprise to improve financial performance and healthy development:expanding sales volume,reducing costs,accelerating industrial layout,improving management and fund utilization levels,and strengthening financial strategic management.