Research On Financial Performance Evaluation Of Vatti

With the sound development of national economy,household appliances industry has gradually become an important pillar industry in national economy,and it has got an all-round support of national policies in the development process.At the same time,with the acceleration of China’s urbanization process,the increase of per capita disposable income of residents,the continuous release of consumption potential,consumers’ purchasing power for home appliances is rising,bringing new opportunities for the home appliance industry.However,in recent years,due to the large attraction of home appliances market,attracting many other enterprises at home and abroad to enter,the market is gradually saturated,and the competitive pressure surges.In addition,due to the double impact of the epidemic and the real estate industry,the price of raw materials has risen and the market is depressed,which frustrates the business development of the whole household appliance industry.Therefore,enterprises should attach importance to their own financial performance level and fully grasp the real situation of capital input,product output and sales operation of the company,so as to improve business strategy and promote sustainable and healthy development of enterprises.This paper takes Vatti Stock as the research object,uses factor analysis method and Dupont analysis method to evaluate its financial performance horizontally and vertically,and puts forward relevant suggestions to improve its financial performance.In this paper,the background,purpose and significance of the research are introduced at first.After combing and summarizing the relevant literature,the research content and methods of this paper are proposed,and the basic concepts and theories used in this paper are introduced.Secondly,it makes a detailed analysis of the general situation of Vatti Stock,and introduces the company’s operating situation from the balance sheet,profit statement and cash flow statement.Thirdly,the financial performance evaluation system of Vatti Stock is constructed.Based on the comprehensive consideration of the characteristics of kitchen electricity industry and the development status of Vatti Stock,15 financial indicators are selected from five aspects such as profitability and operation capacity according to the overall principle of importance and feasibility.Factor analysis method is used to calculate Vatti Stock’s ranking in the industry and horizontal evaluation is carried out.At the same time,the Du Pont analysis method is used to decompose the net interest rate on equity into net profit rate on sales,total asset turnover and equity multiplier to make a vertical evaluation of the financial performance of Vatti Shares.Through the analysis,it is found that there are some practical problems in the operation process of Vatti Stock,such as lack of product competitiveness,poor operation level and decrease of cost profit margin.Finally,this paper puts forward specific suggestions from the three aspects of profitability,operation ability and development ability,which is helpful for managers to understand the real financial level of enterprises,identify deficiencies and solve problems,so as to improve the financial performance level of enterprises.