Research On Financial Performance Evaluation Of SN Company Based On Entropy Weight TOPSIS Method

With the rapid development of economic globalization,the overall economic level of our country presents a steady growth trend.With the steady increase of income,residents are more in pursuit of high quality of life and pay more attention to the function and brand of household appliances.However,since the outbreak of the novel coronavirus in 2020,the fierce competition between domestic and foreign electronics companies and the development of the Internet industry have caused a huge impact on offline retail,so the home appliance industry needs to improve the core competitiveness of enterprises’ products.Therefore,if SN Company wants to take a place in the fierce competition,the role of the company’s financial performance evaluation is becoming more and more important.Through the financial performance evaluation,we can find out the problems existing in the financial aspect of SN Company and put forward feasible suggestions for improvement,which has great reference significance for the whole household appliance industry.Taking SN Company as the research object,this paper evaluates the financial performance of SN Company by referring to a large number of literatures related to financial performance and using literature research method and quantitative analysis method.First of all,the research background,purpose and significance of this paper are clarified,and the research status and content at home and abroad as well as the research methods used in this paper are sorted out.Secondly,the financial status quo of SN Company is analyzed mainly from four aspects: financial statements,debt paying ability,operation ability,profitability and development ability.Thirdly,the entropy weight TOPSIS method is used to construct the financial performance evaluation index system of SN Company,which includes 4 first-level indicators and 13 second-level indicators.First,the financial data of SN Company from 2017 to 2021 are selected for longitudinal comparison and analysis.Then,10 enterprises with similar business activities in the same industry are selected for horizontal comparative analysis of the financial data of the recent five years,and the closeness value is obtained through calculation,ranking them,drawing the corresponding chart to get the evaluation results more intuitively,and pointing out the problems existing in their financial performance according to the financial performance evaluation results.Finally,in view of the existing problems,suggestions on the improvement of SN Company’s financial performance are put forward from the aspects of strengthening cost control,optimizing product inventory management,improving debt paying ability and improving development ability.