Research On Performance Evaluation Of LA Company Based On Factor Analysis

As the capital market is growing,the performance evaluation information of a company not only by the management of the company and the shareholders are concerned,more and more external investors,creditors,regulators and the public started to pay attention to the company’s operating performance evaluation.Most of the company’s operating performance evaluation in accordance with the concept of financial management,divided into three modes:maximum profit,earnings per share and the maximization of shareholder wealth maximization,these theories have their shortcomings,the performance evaluation system is difficult to adapt to the rapid social development needs.The research process of this paper is to analyze the small household electrical appliance industry of LA company through the method of factor analysis,so as to evaluate the performance of LA company.We can see from the past professional research,there are some degree of correlation between the company’s financial ratios,the same type of indicators have a lot of contact,which provides the conditions for factor analysis.The principle of factor analysis is to extract similar variables from several variables and integrate them,which can effectively reduce the dimension of information.At the same time,the common factor can be preset by algorithm of classification and naming,if public factors don’t express clearly,in this part of the factor rotation,continue to get more practical and more load factor.Because of the nature of the LA industry and the mutual influence between the financial indicators,the research route and method of this research are finally determined.This paper mainly uses the literature research method,case analysis method and survey method,factor analysis and performance evaluation of the theory and the related data were analyzed and summarized,the factor analysis and performance evaluation of LA data for statistical analysis and Research on the performance evaluation.Most studies only assumes that the overall distribution of the data,without adopting the factor analysis to test the applicability,data of normal distribution was suitable for factor analysis,before the factor analysis of the original data to test the applicability,the KMO and Bartlett’s test and Bartlett test of spherical raw data,to ensure scientific research the.If the original index dimension or economic significance,the original index directly to obtain the comprehensive score,will be very difficult to give a reasonable economic explanation;if the original index variable magnitude difference,the variable value of comprehensive index(common factor)of the impact is large.This paper first before processing the original data were normalized,and all the indexes in the same order of magnitude,in the calculation of factor score,also using the standardized data,that is to ensure a more scientific results.The evaluation of the performance of the company,there is little research through factor analysis of whole industry data to evaluate the performance indicators of specific companies,the method in this paper through the analysis of a large amount of data,but also to ensure the objective and fair results.The author hopes for a detailed introduction and analysis through the research and evaluation of LA company’s current performance situation,summarizes the problems existing in the company,feasibility analysis of the evaluation index,makes the performance evaluation system of LA company is more perfect,the introduction of the concept of factor analysis in the study,the company financial management efficiency and performance evaluation level,professional to improve the level.