Research On Financial Performance Evaluation Of L Company Based On DEA Malmquist Model

The liquor culture is an integral part of China’s long history,and the liquor industry plays an irreplaceable role in the construction of the national economy.After the "three public consumption" and "eight regulations",the booming liquor industry was favored by capital,and the liquor industry also ushered in a wave of peak development.But the good times did not last long,as a wave of sudden new crown epidemics in 2020 hit the recovering liquor industry with another round of blows,and the industry’s first and last divisions were serious and competition was intensifying.In the latest liquor industry report,L ranked fourth in total market capitalization,with industry leaders Maotai and Wuliangye still having a large gap,and Shanxi Fenjiu and Gujing Gongjiu behind them struggling to catch up.Facing such fierce competition,Company L needs to continuously improve its own strength and build a new financial performance evaluation system based on the DEA model by making reasonable improvements to the existing financial performance evaluation system,so as to provide suggestions and assistance for optimizing business management and achieving high-quality development.In this paper,we firstly sort out the development profile and the current situation of financial performance evaluation of L company,and find that the existing performance evaluation system of L company has problems such as unreasonable selection of indicators,non-standardized evaluation methods and lack of external comparison in the industry,and then we study the causes of the problems.In order to better solve the problems,in the process of applying the new evaluation system based on DEA,this paper first uses the literature analysis method to screen out the input and output indicators,and then brings the indicators into the DEA model and Malmquist index model,and the vertical evaluation takes the financial performance of Company L for four years from 2018 to 2021 as the decision unit,and the horizontal evaluation takes the A-share liquor industry in Shanghai and Shenzhen in 2021 The financial performance of 19 listed companies in the A-share liquor industry in Shanghai and Shenzhen in 2021 is used as the decision unit,and the integrated efficiency,technical efficiency,and scale efficiency are calculated to evaluate and analyze the financial performance level of Company L from multiple perspectives.Through the analysis results,targeted suggestions are made to improve the financial performance.On the one hand,we improve the company’s profitability,development,operation and innovation ability,and on the other hand,we take measures to strengthen supervision,improve the efficiency of information processing,enhance the professional quality of evaluators and establish a diversified evaluation system,starting from the financial performance evaluation system.This will not only improve and optimize the financial performance of the company and contribute to its own sustainable development,but also provide a reference for the performance evaluation system of the same type of companies.