Study On Financial Performance Analysis And Improvement Strategies Of Company B

Under the catalysis of the epidemic,the small home appliance industry experienced explosive growth in 2020.However,in the post epidemic era,the dividends brought by the "home economy" are gradually fading.How to improve the economic benefits of the small home appliance industry by enhancing its core competitiveness has become the focus of development for various small home appliance enterprises.Financial performance can comprehensively express a company’s profitability,operational ability,development ability,and debt repayment ability.Therefore,analyzing financial performance is conducive to enhancing the core competitiveness of the company and thereby enhancing economic benefits.As a company specializing in small home appliance operations,Company B plays a "dark horse" role in the small home appliance industry.In order to maintain its core competitiveness,it is necessary to analyze its financial performance.This article takes Company B as the research object,mainly using comparative analysis,quantitative analysis,and other research methods to analyze the financial performance of Company B and propose corresponding improvement strategies.Firstly,introduce the research background,purpose,and significance of this paper,and conduct a research review of literature related to financial performance,EVA,and KPI.Based on relevant domestic and foreign literature,understand the corresponding research status at home and abroad.Secondly,starting from the concepts and basic principles of financial performance,EVA,and KPI,this article introduces the methods used in analyzing financial performance;After a brief overview of Company B’s situation,an analysis of the company’s industry is conducted from four perspectives: national policies,living needs,consumer market,and technology assistance.Financial data from 2017 to 2021 is selected to analyze the four major financial indicators and cash flow indicators of Company B.The necessity and feasibility of combining EVA and KPI to analyze Company B’s financial performance are elaborated.Once again,use quantitative analysis method to calculate the EVA value of Company B from 2017 to 2021,and conduct longitudinal comparative analysis of the obtained data;Using comparative analysis method,horizontally compare and analyze the five KPI indicators of B Company with three leading household appliance enterprises,Midea,Subor,and Jiuyang;Furthermore,an objective analysis of the financial performance of Company B can be obtained,which indicates that Company B has problems such as unreasonable capital structure,insufficient R&D investment,weak future competitiveness,and relatively single marketing channels,as well as the reasons for these problems.Finally,based on the problems and reasons,corresponding improvement strategies are proposed for Company B’s financial performance.It is recommended to optimize the capital structure,increase research and development investment,enhance competitive strength,and change marketing channels,providing reference for the formulation of Company B’s financial performance strategy.