FINANCIAL RATIO ANALYSIS AND PERFORMANCE OF AUTOMOBILE MANUFACTURING INDUSTRY OF LISTED COMPANY IN SHENZHEN

Abstract

In recent years, China's economy and science and technology have made great development and progress, and the development of the automobile manufacturing industry is constantly expanding. However, due to the influence of relevant national policies, market factors -- oil price, material price, competitors and other aspects, the development of automobile industry is facing great pressure. The automobile industry is the pillar industry in China's economic structure. The core of the automobile industry is the whole vehicle manufacturing, and the foundation is the automobile parts manufacturing. The upstream extends to the related industries of the parts, and the downstream extends to the service trade and financial industry related to the automobile. The sustainable development and innovation capability of enterprises are of great significance to financial performance evaluation, enhancing the profitability of the auto industry enterprises, in order to keep sustainable development in our country's economic health. On the basis of the original financial evaluation indicators, the related indicators of enterprise innovation input are added.

Based on TOPSIS method and DuPont Analysis, an improved cross-annual evaluation model of factor analysis is constructed. This model overcomes the limitation that factor analysis can only evaluate cross-sectional data at a single time point, applies it to the financially sustainable development evaluation of manufacturing enterprises, and makes cluster analysis of manufacturing enterprises based on the above evaluation results.

In this study, the sample of 30 A-share listed companies in the automobile manufacturing industry of listed company in Shenzhen was taken as a sample, and the financial data of them from 2013 to 2017 were intercepted. The empirical test on the relationship between financial ratio analysis and business performance was carried out, and the evaluation model was used to test their long-term development ability. The results show that the evaluation results are consistent with the actual trend of the sample enterprises, indicating that the evaluation system can objectively evaluate the financial performance and sustainable development ability of the enterprises.

At the same time, according to the evaluation results, the paper puts forward targeted policies and Suggestions to improve the financial performance of manufacturing listed companies. This evaluation model provides a new idea for the research of financially sustainable development of manufacturing enterprises and the comprehensive analysis of dynamic influence at different time points of panel data. Based on this conclusion, the countermeasures and Suggestions to improve the operation, management and production performance of automobile manufacturing listed companies are put forward.