Research On Financial Performance Of Changan Automobile Based On Entropy-TOPSIS Model

Financial performance reflects the results of a series of business activities of an enterprise.Financial performance can show the situation of cost control,capital distribution,production effect as well as management activities of a company,which Specifically including that the situation of company’s assets and liabilities,ability of make a profit,efficiency of asset management and the ability of long-term development.The paper by investigating financial performance of Chang’an Automobile,can know about its circumstance of solvency,profitability,asset quality and business growth,also can know about the change trend of its comprehensive financial performance level,so that find out the questions in the production and operation,try to ameliorate it’s financial performance and to maintain the healthy and sustainable development.From 2017,the number of sale,market share and total profit of Chang’an automobile have been reduced gradually,and it’s net profit show Huge losses in 2019.The paper construct financial performance evaluation index system from four aspects,they are Solvency,profitability,quality of asset,and business growth.Firstly,simply analyzes the financial situation each dimension of Chang’an automobile by the evaluation index,Then,It uses Entropy TOPSIS model to analyze the change trend of financial performance of Chang’an automobile from 2015 to 2019,and separate analyze the change trend about every dimension.Analysis results reals that profitability and business growth result in poor financial performance.Through in-depth analysis of the main items of Chang’an Automobile’s profit statement in recent years,the profit content and sustainable stability,as well as the consistency of profit structure and asset structure strategy,it is concluded that there are several reasons that affect the profitability and business growth of Chang’an Automobile,and then make its financial performance lower than the industry average standard.Changan Automobile has a large amount of equity investment,and the instability of investment income affects the sustainability of good performance;the profit quality of enterprise core profit is poor.The non-recurring profit(such as income from non-operating and asset disposal)account for a large proportion of enterprise’s total profit;the operational asset investment strategy does not bring core profit,and the asset structure strategy does not match with the profit structure.This paper provides suggestions from the following aspects: strengthening diversified investment,reducing the risk of investment income fluctuation;focusing on the promotion of single competitive vehicles to enhance the competitiveness of the industry;improving the use of operating assets to improve the core profit.