Research On Financial Performance Evaluation For Haier Smart Home Based On Entropy Weight And TOPSIS Model

Home appliance industry plays an important role in manufacturing industry and is an important part of manufacturing industry;With the development of household electrical appliance industry for many years,the competition is becoming more and more fierce.The owners,creditors,managers and the government of household electrical appliance enterprises pay more attention to the financial performance of enterprises.Therefore,it is of great significance to further research the financial performance of household appliance enterprises and build a more effective financial performance evaluation model of household appliance enterprises.Based on the entropy weight and TOPSIS model,this thesis evaluates the financial performance of Haier Smart Home from vertical and horizontal perspectives.The vertical evaluation focuses on the changes in the financial performance level of Haier Smart Home from2016 to 2020,and the horizontal evaluation focuses on the comparison between Haier Smart Home and other household appliance enterprises.The evaluation process of the two is generally similar.The main steps are as follows: firstly,according to the basic principles of financial index selection,national policy documents and the industry characteristics of the target company,this thesis evaluate the five aspects of Haier Smart Home’s development ability,profitability,operation ability,profit quality and solvency.Each ability selects four quantitative indicators to form the evaluation index of Haier Smart Home’s financial performance.Secondly,this thesis standardize and normalize the selected financial indicator data;Then the entropy weight method is used to calculate the index weight,and the weight is multiplied by the data to obtain the normalization matrix;Finally,in order to get comprehensive evaluation score.this thesis calculate the maximum value of each column to form the optimal solution,calculate the minimum value of each column to form the worst solution.Then the thesis use the Euclidean distance method to calculate the distance between the 2016-2020 financial data of Haier Smart Home or the 2020 financial data of the sample company and the optimal solution and the worst solution.After completing the evaluation,firstly,according to the evaluation results of index entropy weight,this thesis analyze the impact of secondary indicators on primary indicators and primary indicators on comprehensive evaluation,finding out the key factors affecting indicators and putting forward improvement measures for specific problems.Secondly,this thesis analyze the performance of each dimension,finding out the root causes of the change of each ability trend and putting forward targeted suggestions.The research results show that the entropy weight and TOPSIS model can help Haier Smart Home evaluate and improve its financial performance to a certain extent.On the one hand,through the vertical evaluation,it is found that Haier Smart Home has deficiencies in the five performance levels of profitability,operation,development,debt repayment and profit quality from 2016 to 2020;Through the horizontal evaluation,the position of Haier Smart Home in the industry is clarified,that is,it has advantages in operation ability and development ability,and lags behind other sample enterprises in terms of profitability,debt repayment and profit quality.On the other hand,using the proportion of index entropy weight,it is found that the rate of return on total assets and the profit rate of main business have a great impact on the profitability of the sample enterprises.The core influencing factor of operating ability is the turnover rate of accounts receivable,the current ratio and quick ratio have a great impact on the solvency of the four enterprises,the core influencing factors of development ability are net profit and net asset growth rate,ratio of cash to current liabilities and net cash ratio of total assets have a great impact on the profit quality of sample enterprises.This information can help managers make targeted improvements to the level of enterprise financial performance and improve the efficiency of enterprise management.