Research On Financial Performance Evaluation Of Xiaomi Company Based On Data Envelopment Analysis

In recent years,with the state’s call of "mass entrepreneurship and innovation",the market situation has changed greatly,and more and more new scientific and technological innovative enterprises begin to play a vital role in the development of our economy.At the same time,the enterprise financial performance evaluation has attracted more and more attention from the relevant stakeholders,and the current research methods on the enterprise financial performance evaluation are increasingly rich,the research content is increasingly in-depth,and the research results are more and more scientific.The research object of this paper is Xiaomi,a representative company among innovative technology companies.The research objective is to use data envelopment analysis method(referred to as "DEA" or "DEA method")to research and analysis of Xiaomi’s financial performance and find out its shortcomings,and then make further analysis with DEA.Hope to find the corresponding improvement methods and optimization direction and offer reference for other companies.This article summarizes the research achievements of domestic and international scholars in the field of financial performance assessment research and the application of DEA in the financial performance assessment,and the related concepts and theories are introduced.Secondly,through the introduction of Xiaomi Company and financial analysis,the status quo of Xiaomi company’s financial performance evaluation is sorted out,and the shortcomings are found out,and the advantages of DEA method compared with traditional methods are explained.Thirdly,the evaluation framework of DEA is built.The concrete contents include the construction and design of the assessment frame,sorting out the implementing steps,selecting the index system and applying factor analysis method combined with DEA method,which provides concrete ideas for the implementation of the application of this system.In the end,the DEA based evaluation system is designed and applied,the factor analysis method is combined with DEA method,and the financial performance of Xiaomi Company is analyzed from horizontal and vertical perspectives.On the basis of analyzing Xiaomi Company’s actual case,this article finds out the deficiency of its present financial performance,and gives some suggestions to Xiaomi Company by DEA analysis: establish an effective performance evaluation organization,appropriately change the previous performance evaluation content,control its scale efficiency,establish a reasonable capital structure,mobilize the enthusiasm of employees,etc.To a certain extent,it can provide experience for other companies to evaluate their own financial performance,and help them find their own development weaknesses,so as to promote their own sustainable development.