Financial Performance Evaluation Of Midea Group Based On The Factor Analysis Method

Home appliance manufacturing has always been an important industry in China,because China’s home appliance manufacturing capacity accounts for 60 to 70 percent of the world’s total production capacity.At the same time,China is also the world’s largest consumer of home appliances,whether it is washing machine,TV,refrigerator,air conditioning,microwave oven and other household appliances,have been widely used and promoted in China.At present,China’s home appliance manufacturing industry is also facing some challenges and opportunities.With the rapid development of economy,consumers’ demand for home appliances is no longer limited to basic functions,but also pay more attention to functional innovation and experience optimization.In addition,under the international environment,the general price increase of raw materials needed by home appliance enterprises has brought a huge impact on the survival and operation of home appliance enterprises.How to face the fierce market competition environment,carefully analyze their own shortcomings,make reasonable,scientific and targeted solutions,win the development advantage in the fierce market competition,to achieve the long-term development of the enterprise.Under the guidance of this demand.Enterprises need to build a scientific,reasonable and effective financial performance evaluation system,understand their own development,operation situation and industry status quo,clarify the advantages and disadvantages of enterprises,provide reference for the next development strategy and development direction,and enhance the competitiveness of enterprises.Guided by this need.Enterprises need to build a scientific,reasonable and effective financial performance evaluation system,understand their own development,operation and industry status,clarify their own advantages and shortcomings,provide reference for the next development strategy and development direction,and enhance the competitiveness of enterprises.This paper selects Midea,a leading enterprise in the home appliance industry,as the object of performance evaluation.On the one hand,the financial data of 48 enterprises in the same industry was selected and the financial performance evaluation system was constructed through factor analysis.Obtain and rank the solvency,profitability,operating capacity and R&D capability of the industry.Analyze the development position,advantages and disadvantages of Midea companies in the industry.On the other hand,11 financial data of Midea companies between2014～2017 are selected.Bring in the established performance evaluation system for longitudinal analysis.Understand the changes in the company’s various capabilities in the past eight years,through the combination of horizontal analysis and longitudinal analysis,comprehensively understand and evaluate the performance level of the enterprise,and give reference opinions.The study found that Midea companies are the most profitable in the industry.The second is operating capacity,both of which belong to the upstream level of the industry.The company’s R&D capability is located in the middle of the industry,and its ability to repay debts is the weakest.Longitudinal studies have found that corporate profitability and R&D capacity have fluctuated over eight years,but have risen steadily overall.The development of the solvency and operating capacity of enterprises has gradually declined in the past eight years.Finally,according to the financial problems found,targeted suggestions are put forward: such as adjusting the company’s capital structure,reducing liabilities,increasing equity financing,strengthening the management of inventory and accounts receivable,focusing on enterprise R&D capabilities and scientific and technological innovation,etc.