Research On Financial Performance Evaluation Of Y Company

The industry of Baijiu has a long history in China and has been pivotal in the development and market foam have become increasingly.And Baijiu enterprises have been involved.It has also affected many Baijiu companies.In addition,affected by the COVID-19,the number of Baijiu enterprises in China has decline,and a large number of Baijiu enterprises have been eliminated from the market.At present,China’s epidemic prevention work has achieved phased victory,and the economy is developing well.Faced with new development opportunities,liquor manufacturing enterprises need to conduct effective financial performance evaluation to maintain their good core competitiveness.As an old Baijiu company in China,Company Y has been innovating its industrial structure and expanding its production scale in recent years,but its various measures are not satisfactory and it has encountered a crossroad of development.Therefore,Company Y is selected as the target enterprise to evaluate and study its financial performance.First of all,purpose and significance are expounded.On the basis of extensive reading of literature,this paper classifies,summarizes and evaluates domestic and foreign financial related literature.Then,contents and methods are introduced,and the relevant theoretical basis and method selection of this paper are expounded.Afterwards,introduce the target company Y.First introduce the company overview,then analyze the financial situation of the enterprise.Analyze the company’s three main financial statements,including balance sheet,income statement and cash flow statement.On the basis the financial situation in the company,factor analysis and entropy method are used to evaluate financial performance horizontally and vertically respectively.Among them,the factor analysis method can be used to analyze the Company Y of 26 companies in industry.Company’s financial data from 2017 to 2022 was analyzed using entropy weights.Finally,based on the results of horizontal and vertical analysis,that Y Company mainly has the following problems: poor sales profitability,Current asset management is low,capital structure is unreasonable,business income growth is slow.Finally,according to the enterprise,corresponding improvement measures are put forward to improve sales profitability.Which requires strengthening cost control and increasing product sales channels.Strengthening current asset management requires optimizing inventory management structure and integrating transportation and distribution services.Optimizing the capital structure,improving the debt Financing structure and reducing equity capital appropriately.To improve the revenue capability of enterprises,it is necessary to create brand advantages and achieve diversified development.