Financial Performance Evaluation of Listed Companies in Anhui Province Based on Principal Component Analysis

With the rapid development of economy, enterprises, as the micro-foundation and economic cells of urban economic vitality, have made great contributions to the development of social economy. And good financial performance management can help enterprises to operate and develop more efficiently and at a high level. This article selects the 56 listed companies in Anhui province as the research target of financial performance evaluation. From four aspects of profitability, development ability, operation ability and solvency including 15 indicators, then use principal component analysis (PCA) for comprehensive evaluation of enterprises’ financial performance from two aspects of qualitative and quantitative to build the index system of enterprise financial performance, and on this basis put forward certain suggestions on the development of enterprises, investors and management for the enterprise to provide decision-making basis.


Introduction
With the rapid development of economy, enterprises, as the micro-foundation and economic cell of urban economic vitality, have made great contributions to the expansion of investment, expansion of productivity development scale and improvement of productivity development level. Therefore, the steady and high-quality development of enterprises can better promote the development of the overall economy. Financial performance management is an important part of enterprise management, is the core of enterprise management, and directly affects the operation and development of enterprises. With the development of market economy, enterprises have more strict requirements on financial management. Therefore, it is very necessary to explore the financial performance management of enterprises to help them develop better.
Financial performance is the contribution that corporate strategy and its implementation and execution are making to the ultimate operating performance. Financial performance can fully express the effect of cost control, the effect of asset utilization and management, the effect of capital source allocation and the composition of the rate of return on shareholders' equity. Therefore, financial performance evaluation plays an increasingly important role in enterprise management. Through the exploration and analysis of the enterprise's financial performance, the factors affecting the enterprise's financial performance are sorted out, and then specific suggestions are provided for improving the operation level of enterprise's financial performance. It is helpful for enterprises to find their own positioning, make up for the shortcomings of the financial system, give play to their advantages, and manage their financial performance more accurately. Reasonable and effective financial performance management can provide good development conditions for enterprises, and help them to achieve stable and high-quality economic development.

Literature Review
As enterprises make more and more outstanding contributions in the process of economic development, many scholars have also studied the impact of financial performance management on enterprise development.
Cheng Lamei et al. (2020) took the back-door listing of SF Express as a case study, calculated the EVA value of SF Express group, and used the obtained EVA value to evaluate and analyze the financial performance of SF Express group before and after its listing. Cui Mengyuan, & Huang Qian (2019) established the financial risk early warning model through principal component analysis, and divided the financial risks of 76 enterprises, realized the early warning analysis of the financial risk of enterprises, and established the financial risk early warning index system that can reflect the investment, financing, operation, debt repayment, profit and development ability. Li Hongrui, & Wang Honghai (2020) to extract the 18 port as the research target of financial performance evaluation of listed companies, and global principal component analysis (PCA) is adopted to calculate and comprehensive scores and sorting, based on the analysis of the results of the study and interpretation, and proposes the corresponding improvement strategies, the study for the master port operating conditions which have certain reference significance for the future business decisions. Liu Jinfang, & Duan Ruyue (2020) the text analyzes the new period under the enterprise financial performance evaluation index system on the implementation of the status quo, this paper expounds the new period, the enterprise financial performance indicators evaluation system to carry out the necessity of Liu Xuanting et al. (2020) on the basis of traditional enterprise financial evaluation system, the introduction of low carbon environmental protection related indicators, from two aspects of quantitative and qualitative build financial evaluation index system. Lu Yang, Wang Jingjing, Gao Kaili, & Liu Xiaohui (2019) selected the data of listed companies in Jiangsu Province in 2017, used principal component analysis to quantify the growth of enterprises from four dimensions of profitability, cash flow capacity, operation capacity and development capacity, and analyzed the impact of R&D investment on growth through multiple linear regression. The empirical conclusion shows that the higher the R&D investment intensity, the better the growth of enterprises. Xie Hong, Xue Qianyu, & Zhu Jia-ming (2019) in view of the small and medium-sized enterprise financing problems, to small and medium-sized enterprises in Jiangxi Province as the research object, made a comprehensive assessment of its financing ability and influence factors of quantitative analysis. First of all, from seven aspects to construct the financing capacity of containing 18 indexes evaluation index system, and by using the principal component analysis (PCA) in Jiangxi Province small and medium-sized enterprise financing ability of comprehensive evaluation. Yang Zihui, Wang Rao, Li Han, Zhang Litong, & Wang Jiawei (2016) focused on the construction and influence of principal component analysis on the performance evaluation system of three types of state-owned enterprises. Based on the construction of different evaluation models and the inclusion of macro-economic indicators of the three types of enterprises by principal component analysis, it is found that the comprehensive ranking of economic competitive enterprises and the ranking of the same industry are slightly higher than the other two types of enterprises. Zhao Jinjin (2019) took Tsingtao Beer as an example, analyzed the strategic map of the company and evaluated its financial performance. Based on the researches of several scholars on enterprise financial performance management evaluation, it is found that there are researches on the influencing factors of enterprise financial performance evaluation and related researches on enterprises in Anhui Province. However, there are relatively few studies on the combination of the two, and few studies on the application of this research idea to listed companies in Anhui Province. Therefore, this paper takes the listed companies in Anhui Province, whose development is not particularly prominent, as the research scope, comprehensively explores the impact of various indicators on the financial performance of listed companies in Anhui Province, and gives relevant suggestions.

Selection of Indicators and Data Sources
In this paper, listed companies in Anhui Province in 2019 were selected as research samples, and appropriate screening was carried out. Enterprises with incomplete data were excluded from the screening conditions, and ST enterprises were deleted. After screening, relevant data of 56 listed companies were finally

Data Processing
Excel was used to sort out the collected data, and SPSS was used to process the variable data. The descriptive statistics after the variable processing are shown in Table 2.

Correlation Test
The 12 indexes selected in this paper are both relatively independent and correlated to some extent. Table 3   In the process of factor extraction using SPSS software, gravel parallel analysis method was used to select factors with eigenvalue greater than 1. As can be seen from Table 3, there are 5 factors with eigenvalue greater than 1, which are respectively represented by Z1, Z2, Z3, Z4 and Z5, as Figure 1.
SPSS software was used for principal component analysis, and the contribution rate of the principal factor was shown in and evaluation factor ( j X ), and further consider factor load quantity: ( ) 1, 2, 3 ,12 ij ij j H L P j = =  of the case of relative importance of main factor.
The factor load quantity is shown in Table 4.
Note that the equation As can be seen from Table 5 (1) Figure 1. Gravel diagram (the picture has been modified) (from SPSS software).  Among them, Z1 is the comprehensive index of short-term solvency of the first principal component listed company. In the formula, X12 current ratio, X13 quick ratio and X14 cash ratio take up a large proportion.
Among them, Z5 is the comprehensive index of the operating capacity of the listed company with the fifth principal component. In the formula, the two indexes of X8 receivables turnover ratio and X9 inventory turnover ratio account for a large proportion.
2) With the variance contribution rate corresponding to each principal component as the weight, the weighted sum is used to obtain the urban economic vitality evaluation system model: F for the financial performance of listed companies, Z1, Z2, Z3, Z4 and Z5 re-Open Journal of Social Sciences same time, encourage enterprises to improve business performance, to improve the financial situation providing more feasible ideas and thoughts. Hope can help enterprises to obtain more long-term stable development.