Research On Financial Performance Evaluation Of Gree Electric Appliances Based On Efficiency Coefficient Method

As one of the main manufacturing industries in China,home appliance industry occupies a pivotal position in the world.With the rapid development of Internet marketing,domestic household appliance companies have risen rapidly under the support of national policies.What follows is the increasingly fierce market competition and the saturation of the domestic market.Due to the continuous tightening of macroeconomic and real estate policies,the retail market of Domestic appliances in China showed a certain downward trend in 2019.Novel Coronavirus has continued into 2020,putting even more pressure on an already weak market.Therefore,in the current economic situation,how to improve the financial performance of enterprises in the fierce market competition,become the focus of the major companies.Gree Electric Appliances is a leading company in the domestic household appliance industry,and has made outstanding achievements in technological innovation and other aspects,so it is of great practical significance to analyze and evaluate its financial performance.This paper takes Gree Electric Appliances as the research object,adopts literature research method,comparative analysis method and quantitative analysis method to evaluate the financial performance of Gree Electric Appliances from 2016 to 2021.First of all,the relevant theories of financial performance evaluation are elaborated,including the concept of financial performance evaluation and the method of financial performance evaluation,and the relevant theoretical basis of the paper is defined,including principal-agent theory,stakeholder theory and information asymmetry theory.Secondly,the basic situation and main business of Gree Electric Appliances are described,and the financial statements from 2016 to 2021 are analyzed to fully understand the financial status of Gree Electric Appliances.Thirdly,18 indicators are selected from the four aspects of solvency,profitability,operating capacity and growth capacity,and the financial performance evaluation index system based on the efficiency coefficient method is constructed.The entropy method is used to give weight to each indicator,and the efficiency coefficient method is used to calculate the score of each indicator,so as to evaluate the financial performance level of enterprises.Finally,according to the results of financial performance evaluation,the existing problems of Gree Electric Appliances are analyzed and found.On this basis,countermeasures are proposed to improve the company’s financial performance,which is helpful to enhance the company’s core competitiveness and provide important reference for other companies in the industry to evaluate their financial performance.