Create Financial Index to Measure the Performance Of Listed Companies based on Factor Analysis

The analysis of financial index is one of the important bases for listed companies. In this paper. we selected financial indexes in all listed companies of Shenzhen Stock Exchange and Shanghai Stock Exchange (To weed Out the listed companies of modified audit opinion The financial index was suited for factor analysis by KMO and Bartlett's Test. Through factor analysis. we got Total Variance Explained At turned Out to be that there were only 12 new comprehensive variables needed to explain the great mass of original information through factor analysis. According to the Rotated Component Matrix and the component content, we gave a name to 121 factors and established a comprehensive assessment function. So the method of Varimax was used by Component Matrix. According to the components of 12 factors, we give 12 names respectively. Based on the variance of contribution rate, we established a comprehensive assessment function, calculated each score of the sample of the comprehensive factor. We made order of the score. evaluated the financial Situation of the listed company's comprehensively and promoted relevant advices for the investors and governor. considering the prospects of the company and the factors that will influence the financial situation.