Research On Financial Performance Evaluation Of BH Automobile Based On Entropy Weight-TOPSIS

With the advancement of technology and the popularity of the Internet,the automotive manufacturing industry is in a new stage of transformation and upgrading.In terms of the general environment,the automotive manufacturing industry has been particularly reformed in recent years,and the positive momentum in the development of new energy and smart networked vehicles in China is also driving the relevant vehicle enterprises to accelerate their transformation and upgrading.In addition,after so many years of development,the financial performance evaluation has built up a relatively comprehensive and mature system.At the same time,the limitations of traditional performance evaluation methods are becoming more and more obvious,and people’s demand for financial information cannot be satisfied.The application of Entropy-TOPSIS can provide a more comprehensive analysis of an enterprise’s operations,finances and prospects.BH Automotive,as a leader among many auto parts manufacturing enterprises in China,has experienced a continuous decline in profits or even losses in recent years.In order to explore the reasons for this,this paper selects BH Automotive as the research object,evaluates its financial performance horizontally and vertically by applying the entropy-TOPSIS method,and proposes corresponding countermeasures based on theanalysis of the evaluation results.Before conducting the specific evaluation study,the company profile and business scope of BH Motors are introduced;and its financial status is analysed through the presentation of statement items.Then,by consulting the Guotaian database,based on 20 sample companies and BH Auto’s data for the five years from 2017-2022,14 financial indicators were selected from six dimensions: solvency,operating capacity,profitability,development capacity and cash flow capacity,and the entropy-TOPSIS method was adopted to evaluate them horizontally and vertically respectively,using theories such as information asymmetry and stakeholders.The ranking of each specific capability was calculated separately first,and then its financial performance was ranked comprehensively.It was found that BH Automotive ranked high in debt servicing capability,and the remaining four capabilities were ranked in the lower middle of the industry,with poor overall financial performance.Finally,based on the analysis of BH Automotive’s current financial situation and the results of its financial performance evaluation,recommendations were made to address its poor profitability,low utilisation of debt capital,operational management to be strengthened and low efficiency of cash flow management,such as strengthening the utilisation of costs and expenses,improving the core competitiveness of its products and increasing debt financing,in order to help it solve its financial performance problems and thus promote BH Automotive’s smooth transformation and smooth development during the reform period of the automobile manufacturing industry.This will help BH Automotive to transform smoothly and develop smoothly during the reform period of the automobile manufacturing industry.