Research On Financial Performance Evaluation Of S Company

As a traditional pillar industry of the national economy,the apparel industry has a significant impact on China’s economic development.With increasingly fierce domestic and international market-based competition and rising consumer demand,China’s apparel industry is facing a huge threat.The overall revenue growth rate of China’s garment industry has been declining for five consecutive years and the export scale of garments is gradually decreasing;coupled with the impact of the New Crown Pneumonia epidemic,some domestic garment enterprises are in the dilemma of bankruptcy and closure.Therefore,the financial performance evaluation study of China’s apparel enterprises can provide a comprehensive understanding of financial performance and identify the shortcomings,so as to improve the competitiveness and resilience to risks and promote the long-term development of enterprises.This paper selects the financial performance of S Corporation,which was established earlier and has an influential brand in the industry,as the research object,and uses literature research method and quantitative analysis method based on principal-agent theory and stakeholder theory.Firstly,the research views of domestic and foreign scholars on the theory and application of corporate financial performance evaluation are sorted out,and the relevant concepts of financial performance evaluation are defined.Secondly,the basic situation,organisational structure,employees and financial situation of Company S were outlined;an appropriate method was selected and the financial performance evaluation index system of Company S was constructed from both horizontal and vertical aspects based on the principles of financial performance index selection.Thirdly,the financial indicators of 32 apparel companies from 2017 to 2021 were selected for horizontal financial performance evaluation using factor analysis in terms of four capabilities: profitability,debt servicing,operation and development,and it was found that the profitability,operation and development capabilities of Company S decreased.The entropy method was then applied to evaluate the financial performance of Company S from 2017 to 2021.Finally,based on the results of the horizontal and vertical evaluations,the problems of Company S in terms of expense control,brand influence,inventory and receivables management and main business development were analysed,and the following suggestions were made to optimise the above problems,namely reducing related expenses,enhancing brand influence,strengthening inventory control,enhancing receivables management and optimising the channel structure.