Financial Performance Evaluation Of A Company Based On Factor Analysis

In the context of economic globalization,the development of enterprises is facing a more severe test,and High-tech Enterprises,as the main force of scientific and Technological Development,put forward higher requirements for their own management.In order to give full play to the decision-making management of high-tech enterprises,it is necessary to make a comprehensive and profound evaluation of the financial performance of enterprises,and to improve the level of financial performance evaluation with a correct understanding of their own operating conditions.Only in this way,high-tech enterprises can gain competitive advantage in the development of the industry.However,the current financial performance evaluation system in China is not perfect,and there is no clear evaluation system for different industries.Therefore,it is necessary to set up a set of evaluation system suitable for high-tech enterprises.This paper takes company A as the research object,uses the factor analysis method to construct a suit of financial performance evaluation system,and then carries on the in-depth evaluation to the company’s financial performance according to the evaluation system,proved the rationality of the system.First of all,this paper introduces the background significance of the study and the related theoretical concepts,clear the deep meaning of the object of study.Secondly,the financial performance evaluation system of company A is constructed.The main method adopted is factor analysis method,which is constructed from the aspects of index selection,sample source and the necessity of factor analysis,formed a set of evaluation system with characteristics.Thirdly,the new evaluation system is used to evaluate the financial performance of the enterprise,and it is concluded that to be competitive,the enterprise should pay attention to improving profitability and debt-paying ability.Finally,A company to improve the financial performance of the recommendations and summarized.The results show that the financial performance level of company A is in the middle and lower rank in the whole industry,and there is a certain gap between company A and other companies.The construction of scientific and reasonable financial performance evaluation system is not only beneficial to improve the level of business management and enhance the competitiveness in the industry,but also can provide experience for other enterprises.