Research On Financial Performance Evaluation Of Dongfeng Automobile

With the development of economic globalization and changes in the competitive environment of the international and domestic automotive markets,the automotive industry is currently facing enormous survival pressure.The epidemic situation has varying degrees of impact on the social economy.Looking at the automotive industry as a local area,occupying a favorable position in fierce competition,gaining more market share,and maintaining and improving the operational efficiency of enterprises are the problems that enterprises need to solve.This article focuses on the financial performance evaluation of Dongfeng Motors.Dongfeng Automobile,as one of the four major domestic automobile enterprises,bears the responsibility of maintaining and increasing the value of state-owned assets.However,in the new situation of the automotive industry where the development concept of new energy vehicles has deeply rooted in people’s hearts,Dongfeng Motors has stalled,and some series of cars do not have much competitiveness in terms of price and products.Dongfeng Motors must attach importance to the management of various stakeholders and financial performance evaluation in the business process,and re-examine the current development strategy that conforms to survival needs.This article uses factor analysis,entropy method,and other methods to understand some current financial performance evaluation index systems and evaluation methods.After selecting the financial data of Dongfeng Motor from 2016 to 2021,it first conducts a financial analysis from the company’s balance sheet,income statement,and cash flow statement,and then constructs a horizontal and vertical evaluation index system for financial performance,Using factor analysis and entropy method to comprehensively evaluate the financial situation of Dongfeng Automobile,and combining the characteristics of the automotive industry,analyze it from four aspects: profitability,operation,debt repayment,and development.The research results indicate that through a horizontal and vertical comparative analysis of Dongfeng Motors,it was found that the financial situation of Dongfeng Motors in the past 6 years has not been optimistic,with problems such as low return on investment capital,long recovery time of accounts receivable,high asset liability ratio,and slow expansion speed of the enterprise.This article proposes corresponding suggestions for the above issues: strengthening cost control,improving the quality and management of accounts receivable,optimizing capital structure,and strengthening product and technology research and development.I hope to help Dongfeng Motors solve existing financial problems and have a certain reference value for similar enterprises.