Konka Group Financial Performance Evaluation Research

With the national supply-side reform and the upgrading of residents’ consumption ability in recent years,the competition in the home appliance industry has become more and more intense.Domestic home appliance companies have realized the importance of change and started to explore diversified operations and strategic development adjustments to improve their business management and occupy more market share.Konka Group,as a well-known brand in China’s home appliance industry,started a strategic transformation in 2016.This paper takes Konka Group as the research object to investigate its financial performance since its transformation in 2016.Based on the theory of financial performance evaluation,this paper uses the financial statement data of Konka Group from 2016 to 2020 as the research sample and selects 16 secondary financial indicators based on the four primary indicators of profitability,operating capacity,solvency,and growth capacity,combined with the characteristics of home appliance industry and enterprise features.Subsequently,the entropy value method was applied to assign weights and the efficacy coefficient method was selected as the financial performance evaluation method.To further analyze the financial performance level of Konka Group,TCL,a company in the same industry,was selected for cross-sectional comparison analysis,and finally concluded that: Konka Group’s profitability is at a medium level;operational capability is better than TCL,debt servicing capability is poor,and is at a lower level than TCL;growth capability is about the same as TCL,but the overall performance is below the average level.Finally,according to the conclusion,we suggest that Konka Group should strengthen its core competitiveness and look for profit growth points,optimize its capital and industrial structure and strengthen risk management,and improve its brand management to maintain revenue growth.