Research On Financial Performance Evaluation Of China Southern Airlines Based On Entropy Weight TOPSIS Method

With the deepening of reform and opening up and the deep integration of China’s economy and the international economy,all walks of life are experiencing a leap from extensive to fine management.More and more enterprises realize the importance of financial performance evaluation to enterprise development.In recent years,due to the comprehensive impact of complex factors such as high-speed rail transportation,Sino US trade friction and COVID-19,the development of China’s aviation enterprises has become more difficult and full of obstacles.How to win a place in the compressed profit space and ensure the stability of operation has become an urgent problem for aviation enterprises across the country.At present,the financial performance evaluation of enterprises shows poor evaluation effect due to old methods,unreasonable weight setting,unscientific index system and other problems.This paper attempts to carry out exploratory research on the application of financial performance evaluation in aviation enterprises,and is committed to getting the financial performance evaluation results closer to the actual development of enterprises.Taking China Southern Airlines as the research object,this paper points out the shortcomings of China Southern Airlines’ current financial performance evaluation.On the basis of optimizing the financial performance evaluation index,the entropy weight TOPSIS method is introduced to carry out the case analysis of China Southern Airlines’ financial performance evaluation,and reveal the financial performance of China Southern Airlines.Through the horizontal comparative analysis of the financial performance of Air China,China Eastern Airlines,Ji Xiang airlines,Spring Airlines and China Southern Airlines,it is found that the financial performance level of China Southern Airlines ranks third among the reference airlines,and its comprehensive strength needs to be further improved;In terms of vertical evaluation,the financial data from 2015 to 2020 are selected for analysis.The results show that the fluctuation of financial performance over the years is in line with the reality.At the same time,it is found that the main problems of China Southern Airlines’ financial performance are high debt risk,insufficient cost control ability,poor cash flow status and low asset management efficiency.In addition,the study believes that the quick ratio,asset liability ratio,cost profit ratio,fixed asset turnover,accounts receivable turnover and sales cash ratio are the key indicators affecting the financial performance evaluation of China Southern Airlines,which needs special attention.Finally,according to the evaluation results,the paper puts forward suggestions from four aspects: optimizing capital structure,strengthening cost management,strengthening cash flow management and strengthening asset management,in order to more effectively improve the financial performance level of China Southern Airlines.This paper carries out the research on financial performance evaluation by introducing entropy weight TOPSIS method,and evaluates the financial performance of aviation enterprises from an updated perspective.Compared with the traditional evaluation methods,the weight setting of entropy weight TOPSIS method is more objective,breaks the limitations of the traditional evaluation model that needs to formulate the standard value,increases the evaluation level and is more suitable for comparative analysis,so as to make up for the shortcomings of the old methods,deeply reveal the various risks faced by the enterprise,provide a more reliable decision-making basis for the enterprise,help the managers better judge the operation and management status and more effectively improve the economic benefits of the enterprise.