W Company Financial Performance Evaluation Based On Factor Analysis

With the rapid development of economic globalization and information technology,the business environment of enterprises has changed dramatically compared to the past.If modern high-tech companies want to effectively implement strategic management and obtain and maintain their core competitiveness,effective performance evaluation must be conducted.The evaluation of financial performance has an important guiding role in the operation and management of high-tech enterprises and should be given more attention by enterprises.How to scientifically and comprehensively evaluate the financial performance of a company has always been a hot topic in the academic and business world.In particular,the introduction of statistical methods to improve the level of financial performance evaluation is very prominent.This article takes W company as the research object,through the evaluation and analysis of the financial performance of the non-listed company,chooses to use the factor analysis method to evaluate W company’s financial performance,and then finds the existing problems,and puts forward the corresponding suggestions for improvement.This article is mainly divided into the following five parts.The first part introduces the research background,research purpose and significance,followed by a review of research at home and abroad,and put forward the research content and research methods.The second part defines the concept of financial performance evaluation and introduces several common methods of financial performance evaluation.The third part introduces the basic situation of W company,and analyzes W company’s financial performance.In the fourth part,the company’s financial performance evaluation system with factor analysis method was conceived.Based on the basic principles of selecting financial indicators and combining the industry characteristics of the company,the company’s financial performance evaluation index system was constructed.To analyze the financial performance of W company and get the result of comprehensive evaluation.The last part is the research conclusions and prospect.Therefore,on the basis of studying predecessors’ research and analysis,this paper constructs a set of financial performance evaluation system suitable for unlisted high-tech companies,and uses a large amount of financial data,financial ratio formulas and charts,to make pointed references for the financial performance evaluation of W company.The main research contents include W company’s profitability,operation ability,debt repayment ability and growth ability.It also uses factor analysis method to evaluate its overall financial performance,and obtains an intuitive financial performance score to analyze the company’s financial performance.Other non-listed companies can also use this financial performance evaluation system to study their own operating conditions according to their owncircumstances,which will help operators to use their own conclusions to conduct self-diagnosis,identify problems,make timely adjustments,and make correct business decisions and development planning.