Comprehensive Evaluation Model Construction of Multidimensional Financial Indicators Based on Entropy Weight Method

Abstract

The rapid development of the economy in recent years has brought convenience to enterprises, but also made the competition between enterprises more intense, enterprises want to stand firm in the fierce competition not only to improve financial performance, but also from a multi-dimensional integrated perspective. For this reason, this paper launched a multidimensional financial comprehensive evaluation research for enterprises. Based on the Harvard analytical framework, the study firstly emphasizes the financial performance of enterprises and at the same time combines the social responsibility perspective to screen the indicators. Then the quantitative evaluation method of this paper is proposed, i.e. the entropy weight method and gray correlation method are combined to analyze the development status of multidimensional financial performance from an objective point of view. Then the entropy weight method and gray correlation method model are introduced respectively, and the modeling method of combining the two applied in this paper is explained. Finally, by analyzing and evaluating the results of the sample company M, it can be obtained that (1) the results of the correlation degree of company M from 2017 to 2022 are 0.722, 0.473, 0.398, 0.389, 0.426, and 0.496 respectively, and the results of the multidimensional financial synthesis evaluation of company M during these six years are optimal in 2017. (2) The overall performance of the financial capital status of Company M from 2017 to 2022 is gradually deteriorating. (3) Overall, the performance of Company M’s responsibility to its employees is evolving from 2017 to 2022. (4) The company’s performance of responsibility to consumers and government during the six years from 2017 to 2022 is good, but ecological responsibility is at a medium level and has some room for development. This paper provides a multidimensional and comprehensive evaluation of the financial indicators of the company from a scientific point of view, which provides some reference for investors and business managers.

Keywords: Harvard analysis framework; social responsibility; entropy weight method; gray correlation; comprehensive financial evaluation