Research On The Financial Performance Of X Real Estate Company Based On Entropy Value Method

In2022,the overseas situation was turbulent while the domestic economy was under pressure,continuing the downward trend seen in the previous year.The overall development,investment and sales scale of China’s real estate industry decreased significantly compared to the previous year.The real estate industry is a fundamental and leading industry that can promote rapid national economic development.Therefore,promoting the healthy development of the real estate industry is of great significance for stabilizing the national economy.With a high concentration in the real estate industry,the development status of listed real estate companies can reflect the overall development trend of the industry.X Real Estate Company is a leading listed real estate company in China and its development status is representative.Therefore,this article uses financial performance evaluation tools to conduct an in-depth study of the financial performance of X Real Estate Company,explore its existing business problems,and discover effective ways to improve business performance while also providing reference for Chinese listed real estate companies to improve their performance levels.Firstly,this article analyzes the relevant theories and concepts of financial performance evaluation and systematically examines the current research status of performance evaluation domestically and internationally.It further analyzes the necessity and suitability of evaluating X Real Estate Company.Starting from the current development status of China’s real estate industry and combining with the financial performance influencing factors and its own characteristics,this article constructs a financial performance evaluation index system from four dimensions:profitability,debt-paying ability,operational ability and growth ability.Then,using the optimized entropy method as the comprehensive evaluation method,this article conducts a comprehensive evaluation of X Real Estate Company’s financial performance from 2017 to 2021.Finally,based on the constructed financial performance evaluation index system,this article summarizes X Real Estate Company’s financial performance ranking among industry peers.Based on the research,this article concludes that:(1)X Real Estate Company’s debt-paying ability is poor;(2)X Real Estate Company faces inventory pressure and excessive use of funds;(3)X Real Estate Company’s cost control ability is weak.Based on the above research conclusions,this article proposes several targeted suggestions for X Real Estate Company.At the enterprise level,this article suggests the following three points:(1)optimize the capital structure;(2)strengthen inventory management;(3)focus on reducing costs and increasing efficiency.At the government level,this article suggests the following three points:(1)strengthen the long-term regulatory role of real estate enterprise policies;(2)enrich the financing channels for real estate enterprises;(3)encourage real estate enterprises to carry out digital transformation.The financial performance evaluation index system constructed through the entropy method not only makes the financial performance evaluation of X Real Estate Company more accurate and scientific,but also has reference value for improving the financial performance level of listed real estate companies.At the same time,it lays a foundation for researching and constructing a multi-dimensional and differentiated performance management system for real estate enterprises.