Research On Financial Performance Evaluation Of KL Electric

With the continuous slowdown of world economic growth and the increase of uncertain factors in international relations,the trend of power industry transformation has become increasingly prominent,and the transformation and upgrading of the power industry has also entered a stage of acceleration and adjustment due to the impact of my country’s macroeconomic situation.The changes in the power supply and demand situation brought about by the supply-side reform and the further adjustment of the power consumption structure have jointly caused the price of electrical equipment market products to rise our country’s traditional electrical machinery and equipment manufacturing enterprises have a solid technical foundation,complete and mature production lines for low-and mid-end products,and a high degree of automation.However,with the emergence of new technologies and new products,industry competition is becoming increasingly fierce and the pressure for corporate transformation continues to increase.The objective needs of ecological safety protection and the rise of renewable energy technologies represented by photovoltaic,while promoting the accelerated adjustment of the power structure,have also put forward new challenges and strict requirements for the transformation and upgrading of the electrical machinery and equipment manufacturing industry.This paper selects KL Electric,a private listed company in the electrical machinery and equipment manufacturing industry,as the research object,and conducts a horizontal and vertical comprehensive comparative study on its financial performance optimization,in order to provide a reference for the analysis and improvement of the financial performance of listed electrical companies.The main content of the article is as follows:First,this article combs the domestic and foreign literature on the development of financial performance theory and empirical research,and briefly reviews them,pointing out the direction for the subsequent analysis and research,and then briefly introduces the concepts and concepts of performance,financial performance,and entropy method.Financial performance empirical analysis theory,enterprise life cycle theory and other related theories.Secondly,taking KL Electric as the research object,conduct a two-way comparative analysis of its financial performance from 2015 to 2019: On the one hand,it is a longitudinal comparative analysis.Through the trend analysis of its profit,operation,debt servicing and growth ability indicators,and the industry average On the other hand,it is a horizontal industry comparison analysis.30 A-share listed companies in the same industry are selected as research samples,and the weights of different performance dimensions are determined based on the entropy method and the comprehensive financial performance is scored and ranked.Finally,combined with the results of the vertical and horizontal comparative analysis,the financial performance of KL Electric is more objectively and comprehensively evaluated,and relevant suggestions and countermeasures are put forward for the improvement of KL Electric’s financial performance.Based on the literature survey method,comparative research method,case analysis method,and financial indicator analysis method,this paper analyzes and evaluates the financial performance of KL Electric,and draws the following conclusions: First,an empirical analysis of the financial performance of listed electrical companies It is feasible to first verify the relevance of the original data,and then use the entropy method to assign weights and calculate rankings to objectively measure the financial performance of KL Electric.Second,the biggest impact on the financial performance scores of electrical machinery and equipment manufacturing companies is operating capacity,followed by growth,debt servicing,and profitability.The performance scores of selected companies vary greatly.For most electrical companies,the improvement financial performance should focus on the company’s ability to operate and grow.Third,combined with the horizontal and vertical financial performance analysis of KL Electric in the past five years,it can be seen that KL Electric faces the risk of falling profit margins of its main products,shortage of funds,operating efficiency to be improved,and low overseas market development.Business development,broaden financing channels,research and development of core products and enter overseas,in order to consolidate its market share,maintain a competitive advantage and further expand the market.The innovations of this article are:(1)Combination of traditional financial indicator analysis methods and empirical research methods.It avoids the influence of subjective arbitrariness on performance scores,thereby obtaining more objective evaluation results.(2)The combination of longitudinal analysis and horizontal analysis.It avoids the limitations of traditional single case analysis and the generality of conclusions drawn from large sample data of an empirical study of a certain industry,and strives to restore the true performance level of KL Electric.(3)Combining the development of the enterprise itself with the industry,analyze the worthy reference and shortcomings of KL Electric’s financial performance in recent years and put forward suggestions to enrich the financial performance evaluation research of listed electric companies.This article has the following limitations:One is the limitation of data timeliness.Due to the late listing of KL Electric,for the sake of comparability of financial indicators in the same industry,the data only goes back to2015.After that,follow-up research can be continued to expand the time and scope of data selection.The second is the limitation of entropy method.The entropy method cannot analyze the large gap between the number of indicators and the sample size.Therefore,when selecting indicators and collecting data,it will ignore the possible impact of some unselected financial indicators on performance.The third is the limitation of personal ability.Due to my limited ability,there is still room for improvement in the selection of financial indicators and the process and methods of data calculation and arrangement.