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Academic Journal of Business & Management, 2025, 7(5); doi: 10.25236/AJBM.2025.070510.

Research on the Financial Performance Evaluation of Listed Companies in the Real Estate Industry Based on Factor Analysis Method

Author(s)

Yunuo Wang, Xin Song

Corresponding Author:
Yunuo Wang
Affiliation(s)

Business School, University of Shanghai for Science and Technology, Shanghai, China

Abstract

This paper selects the 2023 financial data of 100 listed real estate companies and uses factor analysis to construct a multi-dimensional financial performance evaluation index system that includes profitability, solvency, growth potential, and financial risk. Three main common factors are extracted: profitability factor, solvency factor, and operational development capacity factor. The study finds that the financial performance of listed real estate companies in China shows significant differentiation, with some companies performing poorly in solvency and operational development capacity, facing debt risks. Therefore, this paper proposes to strengthen profitability and operational development capacity, pay attention to debt risks, and improve the level of financial performance management to promote the healthy and stable development of the real estate market.

Keywords

Real Estate Enterprises; Factor Analysis Method; Financial Performance

Cite This Paper

Yunuo Wang, Xin Song. Research on the Financial Performance Evaluation of Listed Companies in the Real Estate Industry Based on Factor Analysis Method. Academic Journal of Business & Management (2025), Vol. 7, Issue 5: 78-84. https://doi.org/10.25236/AJBM.2025.070510.

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