Financial Performance Study On Textile Enterprises In Zhejiang Province Based On Principal Component Evaluation Method

The textile industry,whose development relationship has relation to national welfare and people's livelihood,is traditional pillar industry and vital livelihood industry for our national economy.In recent years,the textile industry has been faced with an impact of multiple factors such as economic fluctuation at home and abroad,deficiency of interior necessaries,increased production costs,excess production capacity and environmental protection pressure,a transformation and upgrading and business-performance improvement have been the tendency of development.The enterprise quantity of textile industry in Zhejiang province ranks top in China,whose being one of developed provinces in China's textile industry,the characteristic in the development of textile industry in Zhejiang contains industrial agglomeration,large proportion of SMEs(small and medium-size enterprise)and increase of polarizationbetween leading enterprises and SMEs,especially the explosion of monetary crisis turns sellers' market into buyer's market,lots of problems have appeared while being faced with cut-throat competition,due to rising operating costs bring about the falling profit margins of enterprises,financial performance has been a primary problem.Therefore,it possesses a certain theoretical and practical significance by establishing a scientific and objective evaluation system of financial system for textile industry in Zhejiang province.In this paper,An index of per share finance,profitability,operation capacity,development ability,and debt paying ability is screened and concentrated using the methods of clustering analysis,correlation analysis,principal component validity analysis,in the end,the evaluation index system of financial performance for textile enterprises in Zhejiang province is established,and then an evaluation is completed according to financial performance of textile enterprises in Zhejiang province.PCA(principal component analysis)and entropy evaluation method are employed infinancial evaluation for A textile enterprise,analyzing and establishing economic index of principal component though empirical analysis of principal component and the index weight is determined through empirical analysis of entropy evaluation method.In the end,the score results of financial performance from 2010 to 2015 is calculated and analyzed for A company.In order to make a better study on the development of textile industry in Zhejiang,development status and industry distribution characteristics of textile industry,development status and competitive frame of textile enterprises and financial performance in Zhejiang province are analyzed.In the meantime,a conclusion gained by integrating the empirical analysis results as follows:(1)the financial performance of A company appears to be declined at the stage of improving investment,development and experiment,however,the financial performance goes up from decline after the improvement moves to maturity progressively,in the long run,the improvement of A company will inevitably drive an stable increase of financial performance;(2)there's a sharply upside potential of A company's financial performance,the revolution of keeping carrying forward a series of business strategies in scientific management,brand building,technical innovation is a must;(3)operation capacity and debt paying ability made an enormous impact on total performance of A company,which reveals the fact that operating and financing problem being the chief restraining factors in the development of textile industry for A company in recent years.(4)Financial performance evaluation is a comprehensive evaluation system,which also has a need to positively focus on an variation of each principal component score in order to play a role of raising effect of dominant factor and bring along an improvement of inferior factor,hence the enterprise should select suitable strategy according to itself condition.At last,a proposal on development of textile industry in Zhejiang province is offered aiming at the analysis of this paper:(1)build textile industry with eco-environment protection;(2)with an adjustment of industry and products to drive brand building for textile industry;(3)enhance multi-angle innovation ability of textile industry.