Research On Financial Performance Evaluation Of Zhongheng Electric

Industry performance is one of the important standards to measure its management level.In the era of fierce competition in various industries,objective and scientific evaluation of financial performance has many benefits.The results of financial performance evaluation can amplify the shortcomings of enterprise production and operation,provide corresponding decision-making basis for managers,and point out the direction for companies to formulate long-term development strategies.Electrical industry is an important national economy industry,which has a far-reaching impact on the production and life of the whole society.In this industry,Zhongheng Electric develops rapidly.With the increasingly fierce competition in the electrical industry,it is particularly crucial to effectively improve the financial performance level of enterprises,which can not only seek more benefits for the shareholders of enterprises,but also enhance the comprehensive competitiveness of enterprises.Taking Zhongheng Electric as the research object,based on literature research,comparative analysis,quantitative analysis and case study,this paper evaluates Zhongheng Electric’s financial performance by using the efficiency coefficient method.First of all,consult the relevant literature,make a preliminary understanding of financial performance,and introduce its concept and related theories at the beginning,which will lay a solid theoretical foundation for the following writing.Secondly,analyze the three financial statements of Zhongheng Electric from 2016 to 2021,and fully understand the financial status of Zhongheng Electric.Then,a number of financial indicators are selected from four dimensions: solvency,operating ability,profitability and growth ability,and an evaluation system based on efficiency coefficient method is constructed.Entropy method is used to weight the financial indicators,and the index scores under efficiency coefficient method are calculated.Combined with the horizontal comparison with the financial level of electrical machinery and equipment manufacturing industry,the comprehensive evaluation results of Zhongheng Electric’s financial performance from 2016 to 2021 are sorted out.Based on the comprehensive performance evaluation,it is found that Zhongheng Electric has some problems,such as unreasonable capital structure,low utilization efficiency of current assets,lax control of costs and expenses,and declining operating profit level,etc.The causes of these problems are analyzed.Finally,combined with the actual business situation of the enterprise,the corresponding strategies are put forward from the aspects of optimizing the capital structure,attaching importance to the management of current assets,strengthening the cost control and improving the operating profit level,in order to improve the financial performance level of Zhongheng Electric.