| With the arrival and speedy development of the Internet,informationize and big data era,e-commerce companies have become the major development force of the retail industry.Due to intensified competition among companies,traditional physical and online retail models have been unable to satisfy the present demands of economic growth,and retail companies have entered an essential phase of transformation and improvement.Since 2016,the government has issued multiple policy documents to encourage retail enterprises to transform into new retail development.However,the development time of this business model is relatively short,and the impact of the transformation on financial performance is still in the research stage.Therefore,conducting financial performance research on new retail enterprises can timely identify deficiencies in transformation and operation,providing useful guidance and reference for enterprise development.As the first batch of enterprises to implement the new retail transformation,S Company’s financial performance research is more representative.By analyzing the current financial performance of S Company,this paper points out the shortcomings of its financial performance after the transformation,and makes proposals for enhancement.The main research contents of this paper are as follows: Firstly,the relevant literature and specific theories of new retailing and financial performance are sorted out,based on which the current financial performance evaluation method of S company is studied,its limitations are found,and the feasibility of introducing the improved entropy method for financial performance evaluation of S company is analyzed.Secondly,in view of the shortcomings of the existing financial performance index system of S company,combined with the principle of index selection and industry characteristics,the financial performance indicators are selected.Five first-level indicators and 17 second-level indicators of profitability,solvency,operation ability,development ability and cash ability are selected to construct the financial performance evaluation system of S company.Then,based on the financial data of S company from 2014 to 2021 and the financial information of 20 new retail companies in2021,the improved entropy method is used to analyze the financial performance of S company from both vertical and horizontal dimensions.Longitudinal research shows that S company’s operating capacity still needs to be improved,and its development capacity is not strong.According to the horizontal analysis,S company ranks fifth,and its comprehensive financial performance is better,but its profitability is weaker than that of the same industry,and its development ability and cash ability need to be further improved.The financial performance of S company is evaluated and summarized from the vertical and horizontal dimensions,and the reasons for the shortcomings are analyzed.Finally,on the basis of comprehensive evaluation,the corresponding improvement suggestions are given for the shortcomings of S company’s financial performance.Through comprehensive evaluation and analysis,it can be concluded that the financial performance level of S company after transformation has been improved,but there are still some deficiencies.It is necessary to strengthen cost control,improve operational management ability,enrich the company’s business format and improve the efficiency of idle funds,so as to improve the company’s competitive advantage in the same industry.At the same time,the introduction of improved entropy method can reflect the company’s financial performance more objectively,which is feasible and effective.This paper evaluates and studies the financial performance of S Company,which can serve as a reference for the transformation and development of other new retail companies. |
