Evaluation of Debt Repayment Ability of Listed Companies in China's Real Estate Industry

Abstract

A multidimensional evaluation model of debt-paying capacity was developed for the real estate industry using factor analysis applied to the financial data of 140 Chinese real estate enterprises. Following data suitability testing, four key factors were extracted and interpreted: liquidity, long-term financial stability, operational efficiency, and long-term capital maintenance. The factor score matrix was used to compute comprehensive solvency scores, ranking enterprises by performance. Results indicate that firms with stronger liquidity and more balanced financial structures demonstrate significantly higher solvency levels. Practical recommendations for improving solvency are proposed, including strengthening financial structure, enhancing cash flow, and optimizing operational efficiency. The findings provide valuable reference for financial risk assessment and decision-making in the real estate sector.