Research On Financial Performance Evaluation Of YZ Company

With the continuous development of China’s equipment manufacturing industry,it is currently in a critical period of transformation and upgrading,as well as the transformation of old and new driving forces.On the one hand,with the continuous promotion of heavy industrialization and the rapid development of new energy business in China,the equipment manufacturing industry has gained strong momentum,enabling it to rise rapidly.On the other hand,after years of market research and technological progress,the equipment manufacturing industry has good independent innovation capabilities,thus achieving leapfrog development.However,due to the impact of the COVID-19 and the continued weakness of the world economy,the equipment manufacturing industry is still facing various pressures such as reduced demand,oversupply,and expected decline,and competition within the industry is also intensifying.Therefore,establishing an effective financial performance evaluation system can not only enable it to stand in fierce competition,but also play a positive role in the development of the entire equipment manufacturing industry.This article takes YZ Company,which was established earlier and has a certain influence in the industry,as an example to evaluate its financial performance using factor analysis and entropy method.Firstly,it is necessary to introduce the research background,purpose,and significance of this article,and then organize the viewpoints of domestic and foreign scholars.Secondly,based on stakeholder theory,enterprise core competitiveness theory,and principal-agent theory,this study uses literature research,quantitative analysis,and comparative analysis to analyze and select suitable financial performance evaluation methods by comparing their advantages and disadvantages.Once again,introduce the basic situation of YZ Company,including its operational and financial status.Use financial statement analysis to conduct a preliminary analysis of YZ Company’s financial performance,laying the foundation for subsequent factor and entropy analysis.Select indicators from four aspects:debt paying ability,profitability,operational ability,and development ability,and construct a financial performance evaluation system.Combined with the financial data of 30 companies in the equipment manufacturing industry in 2021,Using factor analysis method for horizontal financial performance evaluation,combined with YZ Company’s financial data from 2017 to2021,entropy method was used for vertical financial performance evaluation.It was found that YZ Company currently has problems such as high asset liability ratio,high short-term debt repayment risk,large operating costs,and insufficient cash flow.Finally,countermeasures and suggestions are proposed to improve the financial performance of YZ Company in response to the above issues,in order to provide some assistance for the future development of YZ Company.