Research On Financial Performance Evaluation Of F Company

Since the 21 st century,the rapid development of China’s information technology,the digital economy has had an important impact on people’s daily life.At present,China is vigorously promoting the construction of "Internet Power" and "Digital China",and accelerating the deployment of 5G networks.The communication equipment manufacturing industry plays an important role in the development of information technology.However,due to the influence of many factors in recent years,the communication equipment manufacturing industry has problems such as slow development and continuous decline in the profit margin of communication equipment products.Therefore,communication equipment companies must pay attention to their own financial performance and conduct an objective and comprehensive evaluation of their own financial performance.Financial performance evaluation can help enterprises to understand the problems of operation and management,avoid the operation risks of enterprises,and help enterprises to improve their comprehensive strength.This paper takes the communication equipment manufacturer F Company as the research object,firstly introduces the general situation of F Company,and introduces the current main business and financial situation of F Company.Then,it analyzes the current financial performance evaluation system and evaluation process of F Company,and finds that there are problems such as incomplete selection of financial indicators,unscientific allocation of evaluation indicators weights,and lack of horizontal comparison with the same industry.Secondly,the entropy method is used to vertically compare the financial performance of F Company from 2017 to 2021,calculate the annual ability scores and comprehensive scores of F Company,and analyze the vertical financial performance evaluation results of F Company.Then,64 communication equipment enterprises are selected as sample companies,and the factor analysis method is used to compare the financial performance of F Company horizontally.The ranking of financial performance of F Company in the same industry is obtained,and the horizontal financial performance evaluation results of the same industry are analyzed.Finally,according to the problems found in the vertical and horizontal financial performance evaluation process of F Company,the paper puts forward countermeasures to improve the financial performance of F Company.The research results of this paper show that F Company is currently ranked at the bottom of the financial performance in the same industry,and the lower score of debt risk status and profitability affects the overall ranking of F Company’s financial performance.The financial performance level of F Company in the past five years also showed a downward trend.F Company has problems such as unreasonable capital structure,overstocked inventory,long accounts receivable turnover days,high costs and slow growth in operating income.In order to help F Company to improve its financial performance level,a coping strategy is proposed for the existing problems.At the same time,I hope to provide some references for the financial performance evaluation of other communication equipment companies.