Financial Performance Evaluation Of LZ Company Based On Factor Analysis Method

Manufacturing industry has gradually become the backbone of the quality of China’s economic development,but with the 2020 national "plastic limit order" and other environmental protection policy,the impact of manufacturing in plastic are also increasing,Yangtze river delta as the national important industrial base in the area of plastic products enterprise in the face of the reshuffle,In the face of the dilemma of reshuffle,the plastic products enterprises in the Yangtze River Triangle have more stringent regulations on their own management.In order to enable enterprises to correctly understand their own business situation,it is necessary to make a profound evaluation of their financial performance,so as to constantly improve their own financial performance evaluation ability.To construct the financial performance evaluation system and improve their own financial performance level is an effective method for enterprises to obtain competitive advantages.Manufacturing industry has gradually become the backbone of the quality of China’s economic development,but with the "plastic limit order" environmental policy,and in2020 the new outbreaks,has a huge impact on plastic manufacturing,Yangtze river delta as the national important industrial base in the area of plastic products enterprise in the face of the reshuffle,In order to ensure not to be eliminated by The Times,it is more necessary to understand their own business situation,make a profound analysis of their financial performance,cope with the threat of external environment at the same time constantly improve their own financial performance evaluation level,enhance the overall competitiveness of enterprises.Under the two-wheel drive of the current high-quality development of manufacturing industry and the integration of the Yangtze River Delta,the study on the influencing factors of LZ company’s financial performance and the improvement of the problem will also provide valuable reference for the stable and healthy development of the national plastic products industry.By reviewing relevant domestic and foreign literature,this thesis understands the current situation,influencing factors and theoretical basis of financial performance evaluation,introduces and analyzes LZ company’s industry background,macroeconomic environment and LZ company itself,and summarizes the purpose and significance of this research.After comparing with the relevant financial performance evaluation method selected factor analysis as the core of the performance evaluation method,based on the Yangtze river delta area 51 listed plastic products enterprise financial data and combined with industry characteristics and attributes from the profitability,solvency,operation,development and innovation of the five aspects: select the appropriate evaluation index,constructed to make the company’s financial performance evaluation model;It conducts a comprehensive and systematic evaluation of the company’s financial performance from horizontal and vertical perspectives.Finally,it analyzes the existing problems of LZ Company through the obtained score and ranking,and puts forward targeted rationalization countermeasures and suggestions.The research of this thesis shows that the comprehensive ranking of LZ company in the industry level in 2020 is only 31,ranking relatively backward;From 2016 to 2021,the comprehensive capabilities of LZ companies showed a declining trend.The main reasons include: high cost leads to insufficient profit;In addition,inventory unsalable,the increase of receivables,resulting in a decline in the level of enterprise operating capacity,short-term solvency is weak;Secondly,the capital structure of the company is unreasonable and the proportion of debt is large,which leads to an unhealthy development situation.Finally,this thesis puts forward some feasible measures,such as strengthening the control of costs and expanding sales channels to enhance profitability;Develop inventory and accounts receivable management plans to improve operational efficiency and short-term solvency;Optimize financing channels to ensure the healthy development of enterprises;We will continue to increase the promotion of innovation and enhance the competitiveness of enterprises.