Research On Financial Performance Evaluation Of YT Company Based On The Factor Analysis

Automobile manufacturing industry belongs to the pillar industry of China’s national economic development,which has the characteristics of high industrial relevance,high technical requirements,wide coverage and a large number of spare parts,and has a strong leading role in the development of related industries.Therefore,the steady development of automobile manufacturing industry has an important impact on improving the level of national economic development.In 2018,the sales volume of automobiles declined for the first time in 28 years,but the number of automobiles kept keeps rising.The sharp contrast between the two means that the competition in the automobile industry is increasingly fierce,and enterprises are always facing the risk of being eliminated.In the fierce competition,enterprises need to have a deep understanding of their own situation if they want to operate stably.Building a scientific and reasonable financial performance evaluation system is particularly important for the future development of enterprises,so this paper studies the financial performance evaluation.Listed companies are generally the leaders of the industry,so this paper takes YT company as the research object.First of all,the financial performance of YT company is analyzed,and it is found that there are some problems in the current system,such as the selection of evaluation indicators and data is too one-sided,so this paper uses factor analysis method to evaluate it comprehensively.Compared with the general financial performance evaluation method,factor analysis method selects more comprehensive indicators,and is based on a large number of data.Through dimension reduction and analysis of specific influencing factors,it makes the analysis results more targeted.At the same time,it can model the financial indicators,make the analysis more objective,accurate and convenient for later reuse.Secondly,this paper selects 103 enterprises and 19 financial indicators in the industry,uses factor analysis method to reduce the dimension and finally selects 6 public factors to establish the mathematical model.Using this model,the financial performance of YT company is analyzed vertically,and the selected enterprises of automobile manufacturing industry are analyzed horizontally.Finally,through further study of the above results,it is found that the specific indicators that affect the operational and solvency factors of YT enterprises are accounts receivable turnover rate,inventory turnover rate and cash ratio.Based on the analysis of these indicators,some suggestions are put forward to improve accounts receivable management system,strengthen inventory management,improve monetary capital management and accelerate the application of new technologies in accounting.