Performance Evaluation And Optimization For BBG Commercial Chain Co LTD

With the continuous development and increasingly mature of the retail businessin our country, some enterprises in the industry also increasingly accelerate the paceof entering the capital market. In recent years, several large-scale retail enterprises ofour country enter the capital market, listing on Hong Kong and Shenzhen respectively.Through reasonable and effective operation and management, outstanding results areachieved after listing on the stock market and more and more attention are paid tothese enterprises. In order to avoid haphazard investment and reduce loss, financialstatements play a pivotal role. As the most detailed and comprehensive raw data, itcan not only help investors to understand the enterprise and make an investmentdecision, but also can comprehensively reflect the operating performance, financialcondition and cash flow of an enterprise. What’s more, the financial statements arethe main carrier of information exchange which promote communication both insideand outside the enterprises.According to the information provided by the financial statements and the targetof evaluation, enterprise operating results and financial condition are evaluatedcomprehensively by using specific indicators and scientific method, in which thedirection of enterprise development is indicated. Moderate and small enterprise, aswell as stakeholders can forecast the prospect, evaluate the enterprise,evaluate therisk,determine the investment and then get the max benefit. Under China’s currenteconomic status and development trend, the enterprise operating performanceevaluation is of great influence to the internal and external person as well as othermanagement department.First of all, the development of performance evaluation in foreign country and thebackground of performance evaluation system in our country are introduced thispaper. It is pointed out that business performance evaluation of listed companies inthe agent management mode is inevitable. Secondly some commonly used evaluationmethods and theory of comprehensive evaluation methods are introduced, by whichthe financial statements of the BBG business co LTD are conducted a detailedinterpretation. According to the released financial data of the company from2007to2012and other related contents, evaluation of "Five Ability" is performed."FiveAbility" respectively represented BBG company’s enterprise asset management ability,solvency ability, profitability ability, development ability and operation ability."Five Ability" contains a number of indicators and these indicators involve in enterprise’sbusiness performance and financial conditions. Therefore, through the evaluationmethod, operators and investors can understand the company’s business performanceand development prospects. Because there exists certain disadvantages and limitationsof the single index analysis, Dupont analysis system and principal component analysisare combined in this paper to evaluate the enterprise’s overall performance objectively.Finally, on one hand five suggestions are put forward to help enterprises optimize theoperating conditions, on the other hand, shortage based on the analysis and evaluationare pointed out.