Research On Financial Performance Evaluation Of J Automobile Enterprises Based On Efficacy Coefficient Method

After many years of sustained development at medium to high speed,the Chinese automotive industry has undergone huge structural changes in the scale of market demand and traditional industrial structure,entering a new round of deep industrial adjustment from 2017 onwards.With the global outbreak of the new crown epidemic in 2020,the entire industry entered a brief period of stagnation and the supply chain was affected by the car as a non-essential product.The epidemic has gradually normalised,market volumes have fallen back slightly and disorderly competition continues to intensify,the industry landscape appears more complex,and the friction between China and the US in trade,technology and finance has increased the instability of the market.In the face of these factors,China’s auto industry is actively making changes,paying more attention to technological innovation and upgrading,and strengthening its control over the industry system and value chain.2022,many domestic mainstream auto companies are actively making efforts in the transformation,and the auto industry is accelerating its transformation to "electrification,intelligence,networking and sharing".This paper focuses on the financial performance evaluation of J Automotive in the past five years and a comparison with 17 other companies in the same industry,in order to identify the operational problems of J Automotive and propose improvement measures through a longitudinal and horizontal analysis.This paper uses the efficacy coefficient method to evaluate the financial performance of J Automotive Enterprise as a case study.Firstly,it introduces the development of the automobile industry and the background and significance of the financial performance evaluation of J Automotive,while summarising the existing financial performance research and related theories based on reading a large amount of literature on financial performance evaluation at home and abroad.Secondly,an introduction is given to J Automotive,and the applicability of the efficacy coefficient method to the financial performance evaluation of J Automotive is analysed.Then,financial performance indicators are selected,an evaluation system is constructed,and the entropy value method and the efficacy coefficient method are used to process and calculate the financial indicators.Finally,the results are analysed both vertically and horizontally to identify problems with the financial performance of J Automotive and to make recommendations.This paper finds that,firstly,the financial performance evaluation using the efficacy coefficient method is applicable,and the evaluation results of J Auto are consistent with the trend of changes in the actual values of the indicators,and the combination of the entropy value method and the efficacy coefficient method is objective,reasonable and easy to operate.Secondly,through vertical and horizontal comparisons,it was found that the profitability,asset quality and business growth of J Auto was poor,mainly in terms of weak sales capacity,low cash recovery rate and low growth rate of total assets.Therefore,Auto J should strengthen its R&D technology,enhance its supply chain management and improve its resource allocation efficiency and capacity utilisation in order to safeguard the competitiveness of its products and production and sales volume in the course of its operation.