Financial Performance Evaluation Of H Company Based On Principal Component Analysis

The international crude oil price continued to fall,which has dealt a heavy blow to the development of the world oil industry.Oil companies have reduced upstream development,exploration and investment,and the petroleum engineering technology service industry that leads to petroleum engineering contracting and technical services faces enormous challenges.The entire petroleum engineering technology service industry market is in a state of “tiredness”.In 2018,the number of projects,development and investment is still decreasing compared with 2017.The workload of the petroleum engineering technology service industry is reduced,the industry equipment is idle,and the industry operating income and profits are from 2015.The year has been showing a downward trend.Under the premise of the sluggish market environment,the competition between domestic and foreign petroleum engineering technology service industries has intensified,and at the same time,many problems have been exposed.The price of crude oil has not risen,resulting in lower investment of upstream oil companies and income from petroleum engineering technology service industry.Lowering,the profit of the enterprise is difficult to improve,and the decline of financial performance has become the first concern of the industry.It is meaningful that establishing scientific and objective financial performance evaluation system of H company in theoretical and practical.This paper firstly selects the five financial capability indicators of the petroleum engineering technology service industry.In addition to the four financial capabilities,the five financial capabilities also include indicators per share.Among them,the specific indicators in each indicator are: earnings per share,Earnings per share,earnings per share before interest and taxes,net assets per share,etc.,including indicators of the company's stock factors.Through the preliminary screening results,the company's financial performance evaluation index system is established,and then the principal component analysis method is used to evaluate the financial performance of H company.The principal component factor is obtained through principal component analysis.In order to make the principal component weight more objective and scientific,using entropy method to assign the weight of principal components,and finally obtains the position of each principal component of the H company in the industry.Based on the analysis results,combined with the actual implementation of the policy recommendations for the future development of H company.