Financial Performance Analysis And Performance Promotion Strategies Of Kingenta

Financial performance mainly refers to the enterprises themselves making effective contributions to the realization of business objectives in the process of strategic implementation.From a fundamental point of view,financial performance can comprehensively express the effects of company cost control,asset operation efficiency,allocation of capital sources and return on net assets.The results of high financial performance evaluation not only contribute to the construction of corporate image,but also help companies achieve external financing goals faster.Therefore,whether the company's financial performance analysis can objectively reflect the real business situation of the enterprise,whether for internal business decision makers or external investors and other stakeholders,has a very important significance.The case selected in this paper is Kingenta Company,which makes an in-depth study of the company's financial statements from 2013 to 2018,and compares the operating data of Listed Companies in the industry.It is found that the return on net assets of Kingenta Company declined from the highest rate of 18.7%in 2014 to 4.44%in 2018,and the return on net assets declined seriously.The development of Kingenta Company is facing serious difficulties.Firstly,the financial performance of Kingenta is analyzed from three dimensions:profitability,operating ability and financial leverage.It is found that the net sales interest rate of Kingenta is declining year by year,and its profitability is declining;the inventory turnover,accounts receivable turnover and fixed assets turnover are declining year by year,and its operating ability is not good;the asset-liability ratio is low,the solvency is good,and the financial leverage is unreasonable.Secondly,according to the problems found in the analysis and the actual situation of the enterprise,the author finds out the causes of the problems,such as the high marketing costs leading to the decline of net sales interest rate,the serious backlog of products with weak competitiveness,the insufficient utilization of capacity for repeated construction of fixed assets,the unreasonable capital structure and the insufficient release of financial leverage.Finally,aiming at the problems and causes of Kingenta Company,the paper puts forward corresponding performance improvement strategies.