Research On Financial Performance Evaluation Of G Company Based On Entropy Weight-TOPSIS Method

With the continuous development of mobile networks,smartphones and ancillary devices,the world’s most important innovation hotspot,have also become the biggest driver of the world economy.The impact of the epidemic in recent years has increased corporate financing costs and operating costs,and the downturn in consumer demand and the decline in resident demand for electronic products has also had an impact on the development of consumer electronics companies.For these reasons,it is particularly necessary to select typical listed companies in the consumer electronics industry,evaluate the financial performance assessment and make suggestions for improvement.The thesis takes Company G as the subject of study and uses the entropy-TOPSIS method to evaluate the financial performance of Company G,which has Great value for the company itself and for the industry as a whole.Firstly,we introduce the theories about financial performance and financial performance evaluation,and review and evaluate the research results at home and abroad.Then 19 financial indicators are selected from six aspects: solvency,operating capacity,profitability,development capacity,cash flow capacity and scientific and technological research and development capacity,and a financial performance evaluation index system of G Corporation is established.The paper uses Sina Finance,Flush Finance and relevant annual report information to obtain data on relevant financial indicators of Company G from 2017-2021,and on this basis,it integrates the entropy weighting method and TOPSIS method to evaluate the financial performance of Company G from 2017-2021 vertically,and also evaluates 15 listed companies in the same industry horizontally,so as to analyze their position in the industry,the gap with the industry benchmark,and the gap with the industry average.Finally,based on the analysis of the research results of the financial performance evaluation of Company G,it was concluded that the overall financial performance of Company G is relatively stable,and each of the 19 indicators selected has its own merits.The analysis of these indicators leads to the conclusion that profitability,operating capacity and solvency are the most important factors affecting the development of the enterprise.Compared to other enterprises in the same industry,the cash flow capacity of the enterprise is relatively poor and the investment in scientific and technological research and development is relatively low.Therefore,enterprises should combine with the current actual level of development,make appropriate adjustments according to their own characteristics as well as the internal and external environment,and make steady improvements by improving solvency,avoiding debt risks,optimizing corporate operating capacity,enhancing cash flow management,and increasing R&D in science and technology,as well as providing some reference for the evaluation of financial performance of enterprises in the same industry.