Research On The Financial Performance Evaluation Of The W Company

With the vigorous development of market economy,competition pressure of enterprises has gradually increased.Whether the scientific and effective evaluation can be used to evaluate the financial performance of enterprises has drawn more and more attention by the academic community,besides,it is also particularly important for the enterprises themselves.Scientific and effective financial performance evaluation could help enterprises find their own financial problems and disadvantages,through the comparison in the whole industry,to help formulate scientific strategic planning for development.This paper summarizes the research literature on financial performance to help understand the background and the status quo of the research,and the relevant theory related to this paper to offer technical supportor the following research;then summarizes the basic situation and the status quo of financial performance evaluation of the W company through the investigation and data collection,to analyze the necessity and to offer the idea and design of introducing factor analysis method to evaluate the financial performance of the W company.First,with the combination of the research results over the world and the actual situation of the W company,we select15 indicators from 10 categories,including the assets of profitability,capital profitability,operating profitability,operating capacity,short-term solvency and long-term solvency;then we collect quarterly financial indicators of the W company in the past 10 years and financial indicators of 20 listed companies in the same industry respectively as two samples,which would be analyzed by the designed factor analysis model;next we obtain the results of the financial performance evaluation through the implementation of evaluation methods and conduct comparative analysis from both vertical and horizontal aspects;finally,the financial performance evaluation report is summed up according to the results of analysis and the feasible suggestions for the W company are formulated according to the report.This paper mainly researched the feasibility,scientificalness and effectiveness of the method of financial performance evaluation with factor analysis.Then this paper introduced the feasible implementation plan for W company.It is hoped that the conclusion of this paper is meaningful for W company and even for the chemical industry...