An Empirical Study on Profitability of Construction Listed Companies Based on Principal Component Analysis

This paper selects the data of China's A-share construction listed companies from 2001 to 2019, selects the single index of profitability from five perspectives, constructs the evaluation index system to measure the profitability of construction listed companies, and uses principal component analysis to establish the integrated index reflecting the profitability of enterprises. The empirical results show that: first, the overall profitability of the sample companies fluctuated greatly from 2001 to 2019.Second, the integration index values of A-share construction listed companies from 2001 to 2008 are all negative, indicating the poor profitability of the sample companies during the research period. Third, the profitability of A-share construction sample companies improved from 2009 to 2014, while fluctuated greatly from 2015 to 2019.