Research On Financial Performance Of CRRC Based On Entropy Method

In 2015,in order to ensure the healthy development of CSR and CNR,and to avoid vicious competition with each other,these two companies merged and established CRRC Corporation Limited.China’s high-speed rail industry has developed rapidly in the past decade,from relying solely on imported models from foreign companies to now exporting the CR to foreign countries.CRRC has played a significant role.Relying on its huge assets,large orders,and excellent products,CRRC has become a leader in the rail equipment manufacturing market.As a national key enterprise and also a manufacturer of the "national business card" CR,it has long been highly regarded.However,with its massive assets and continuous expansion of its own scale,CRRC has gradually encountered a series of internal problems.At the same time,the domestic market is gradually becoming saturated,and international market competition is becoming increasingly fierce.These issues have seriously affected the healthy development of CRRC.A good level of financial performance is one of the essential conditions for a company to achieve healthy and sustainable development.By analyzing the financial performance of an enterprise over a certain period of time,one can determine its operational and management status,and understand the problems that exist in the development of the enterprise.Therefore,in order to achieve long-term sustainable development of CRRC and maintain its leading market position,it is necessary to evaluate the operational performance of CRRC in order to formulate strategic decisions that are in line with the actual situation of the enterprise.Based on the annual reports disclosed by CRRC from 2015 to 2021,this article selects various financial data and uses objective and effective entropy method to empower the selected indicators.Starting from multiple dimensions of the company’s debt risk status,asset quality status,business growth status,profitability status,shareholder equity status,and cash flow status,on the one hand,CRRC vertically compares its financial indicators for the past 7 years since the merger,Obtain the financial performance results of CRRC in each year and conduct scientific and reasonable analysis;On the other hand,the financial data of 11 representative and comparable enterprises in the rail equipment manufacturing industry in 2021 were selected for horizontal comparison and analysis with CRRC,resulting in a relatively comprehensive comparison of industry financial performance.By comparing and analyzing CRRC horizontally and vertically,it was found that CRRC has problems such as insufficient asset turnover capacity,slow operating performance,and a relatively single industrial structure.Finally,based on the problems found,the paper puts forward optimization suggestions to strengthen enterprise asset management,strictly control costs,ensure enterprise innovation and R&D,develop industrial diversification and expand market internationalization.