Discriminate Analysis on Listed Real Estate Companies from Related Financial Fundamentals

In this paper, discriminant analysis, a mathematical statistical method, is used to distinguish the operating status of China´s real estate listed companies from good to bad. Four aspects of financial indicators, including earnings per share, current ratio, return on equity and assets-liabilities ratio, are identified to discriminate the operation state of Chinese real estate listed companies. The results are in accordance with the actual situation. This method provides a new way for identifying operating conditions of real estate listed companies in China.