Comprehensive Evaluation Of Financial Performance Of Company C Based On Factor Analysis Method

The automobile manufacturing industry,as an important component of China’s real economy,has a profound impact on its development.In recent years,China’s automobile manufacturing industry has steadily developed.In 2009,China’s automobile consumption market became the largest market,with sales surpassing the United States for the first time.However,in recent years,affected by the COVID-19,China’s economic development has gradually slowed down,and the development of the automobile manufacturing industry has also slowed down.In addition,the fuel vehicle market has become saturated,which has exacerbated the financial risks of the automobile industry.Based on this,it is necessary to effectively analyze the financial performance of Company C,a typical representative company in the automotive manufacturing industry,in order to improve its ability to cope with financial risks.The paper takes C Company as the research subject and takes the financial data of C Company from 2017 to 2021 as the research object.It uses literature research,comparative analysis,and factor analysis methods to explore the financial performance of C Company.Firstly,explain the research background,purpose,and significance of the paper,summarize the current research status at home and abroad,and list the research methods used.Then,elaborate in detail on the concepts of company performance and financial performance,performance evaluation and financial performance evaluation,the theoretical basis of financial performance,and the concepts and advantages of factor analysis method.Secondly,elaborate on the company overview of Company C,analyze its industry environment,and briefly analyze the financial status of Company C.Once again,based on the characteristics of the automotive manufacturing industry,11 indicators are selected from four major aspects: profitability,debt paying ability,operational ability,and development ability to establish a financial performance evaluation system.Using SPSS software and factor analysis method,a horizontal comparative analysis was conducted on 31 companies in the automotive manufacturing industry,including Company C,and it was found that Company C ranked eighth in terms of financial performance.This was mainly due to the fact that Company C ranked sixth in terms of development capability and first in terms of secondary operating capability.However,due to the lower ranking of Company C’s profitability and main operating capability,the overall ranking of Company C was not high,This indicates that the development of Company C is extremely unbalanced;During the longitudinal comparative analysis of the financial data of Company C for each quarter from 2017 to 2021,it was found that the financial performance of Company C has fluctuated significantly in the past five years,with the lowest comprehensive score in 2019 and the highest comprehensive score in2021.Finally,based on the comprehensive ranking of financial performance,analyze the reasons that may affect the financial performance of Company C,and propose development suggestions such as increasing the number of vehicle exports,controlling product production costs,accelerating the collection of accounts receivable,and improving the fund management system of Company C.It is hoped that this can provide some reference and thinking for the subsequent development of Company C and similar companies to improve their financial performance level.