Research On Financial Performance Evaluation Of HD Electric Company Based On Efficiency Coefficient Method

Financial performance evaluation is an important part of managing a business.Measuring economic performance allows managers to better understand the actual performance of the business and gives them a visual understanding of the company’s performance.It can also provide managers with a benchmark against which they can adjust their corporate strategy,thereby reducing corporate risk in a timely manner and thus enabling the company to grow in a sustainable and healthy manner.It is therefore important to focus on the evaluation of a company’s financial performance.A reliable and effective assessment of financial performance can help a company to understand its production and operational weaknesses and to review the situation in order to keep it highly competitive.The general equipment manufacturing industry is a crucial industry in China’s traditional industry.Under the influence of the "carbon peak" and "carbon neutrality" strategies,HD Electric Company,which mainly manufactures thermal power equipment,is poorly operated,and the overall competition in the industry is intensifying.Faced with various challenges,power generation equipment manufacturing enterprises need to continuously improve their financial performance and enhance their comprehensive strength.In this paper,we take HD Electrical Company as the subject of our study,carry out a thorough assessment of financial performance analyse and study the results,and,based on the analysis,make proposals for measures to improve HD’s financial performance.The evaluation of the company’s financial performance enables the company to better understand the problems faced by the company in its operation,and to summarise and conclude them,so as to better maintain the company’s core competitiveness.The thesis begins by describing the background and purpose of the chosen topic,the current status of the research,and an overview of the research content and methodology and the relevant concepts and theoretical foundations.Next,a brief analysis of HD’s company situation and financial statement situation is presented.Then,according to the characteristics of general equipment manufacturing companies,four aspects of indicators were selected,and the entropy value method was used to analyse each indicator to determine the weight of each item.The efficiency ratio method was used to calculate the indicators and assess the financial performance of HD based on the calculations of the annual corporate performance assessment standards issued by the State-owned Assets Supervision and Administration Commission of the State Council.Finally,based on the assessment results,the current financial performance of HD Electric was examined and concludes that the effectiveness of this action is steadily decreasing slow liquidity turnover,weak solvency and continuous negative sales profit growth.The paper concludes by proposing measures to improve cost control,strengthen accounts receivable management,optimise the company’s capital structure and rationalise its business structure.