Study On Financial Index System For Evaluation Of Enterprise Development Ability In China

Today the information-knowledge-based economy is rapidly developing and market economy is highly flourishing,the process of globalization is accelerating,and the competition among modern enterprises is intense.As modern information science and technology is growing with each passing day, the contribution of information and other intangible resources to economic growth is increasing,intangible resources is gradually becoming the focus of the competition among enterprises,and with the increasingly development of market economy,enterprises not olny need to have daily production and management capabilities but also need to have value performance capabilities.To avoid being eliminated under the complex economic structure,the company needs to continue to stimulate the development potential of enterprises to form a company unique competitive advantage and achieve sustained ability to grow value in addition to need basic viability and profitability.Based on the above understanding and consideration,this paper adopts qualitative and quantitative approach,from the financial evaluation of enterprise development ability perspective,made an in-depth theoretical study of enterprise development ability and build up a scientific and effective financial evaluating indicator system of enterprise development ability.The article first discusses the meaning and main contents of enterprise development capabilities,point out that enterprise development is determined by the enterprise management capabilities,profitability,risk control decision,it is an ability of value obtain and increse,based on the current profit and sustainability of earnings.Then based on the mastery of content of enterprise development ability and the analysis of traditional financial indicators in order to constructs the financial indicator system of enterprise development ability,combined with the first-level evaluating indicator system consists of basic viability,risk control ability,competitive ability and growth capacity,the sencond-level evaluation indicator system consists of profit ability,asset management capacity,credit ability,cash capability,intangible resource capacity,value performance ability,asset growth capacity and earning grow aibilty, the third-level evaluating indicator system consists of 11 financial indicators.the indicator system is the traditional evaluation of business performance improvements and in addition, stressed evaluation of enterprise's cash capability, intangible assets capabilitiy,value performance capabilitiy, growth capabiliti,better grasping the essence of enterprise development ability. Finally, utilize dynamic synthesize evaluation to analize development capacity of listed companies on China's biological industry based on the related financial information in the period of 2005 to 2008 year,thus obtain comprehensive evaluation value and rank results consistent with the actual situation with the companies,thus verify the feasiblity and effectivity of enterprise development ability financial indicator system.