Study On The Evaluation Of Financial Performance And Improvement Measures Of Z Communication Company

Responding to the atmosphere of the 19 th CPC National Congress and the 19 th Plenary Session,Chinese communications industry has been actively pursuing the construction of a strong Internet nation,a digital China and an intelligent society,making every effort to build a digital economy with new advantages,thus further promoting economic development and achieving remarkable results,and the 14 th Five-Year Plan has also made a great start.During the 14 th Five-Year Plan period,information technology has further promoted the development of digitalisation,while the construction of digital China has been strengthened.The State Council’s work report for 2021 sets out the goals and tasks of the 14 th Five-Year Plan: to promote the transformation and upgrading of digital industrialisation and digitalisation so that the digital economy has irreplaceable advantages,and to promote the development of digitalisation,improve the speed of building a digital society and digital government,and create a digital ecology.To make a large amount of data transmission,the country has designed and completed the overall layout of the national integrated big data centre system,and launched the "East Digital West Calculation" project in all aspects,and the advantages of these new information infrastructure construction have further expanded the growth space of the network communication service industry.However,due to the economic downturn and the impact of the New Crown Pneumonia outbreak,Z Communications is in a precarious financial position,and it is especially important to conduct financial performance evaluation to identify problems and improve financial performance,so as to maintain stable development and occupy a leading position.The study object of the paper is Z Communication Company Limited,starting from the investigation background,purpose and significance,firstly,it reviews a large amount of domestic and foreign literature,summarizes the attitudinal views of domestic and foreign scholars on financial performance evaluation methods and indicators,identify the research methodology employed and the scope of the paper,and provide an elaboration of the theoretical underpinnings associated with financial performance;secondly,the basic situation of Z Company and Z Company since financial statements from the listing in 2016 to 2022,highlighting some of the core data indicators of the balance sheet,income statement and cash flow statement to make a preliminary determination of the financial position of Z Communications;then,eighteen financial indicators were selected based on four components of solvency,operating capacity,profitability and development capacity,using the entropy value approach to establish the indicator weights,and using the efficacy coefficient approach to Z Company At the same time,we selected 12 comparative companies in the same industry and conducted in-depth assessment and analysis of Company Z through horizontal comparison to summarize the issues that exist in the daily operation of Company Z.Finally,based on the results of the financial performance evaluation,we propose targeted countermeasures to improve the company’s financial performance,such as adjusting the capital structure,improving the debt service guarantee mechanism,improving the speed of capital turnover,strengthening inventory management,improving revenue,reducing costs,increasing R&D investment,and expanding new markets.