Evaluation Of Lu’an Enviromental Energy Financial Performance Based On EVA And Suggestions For Improvement

Under the influence of the adjustment of energy consumption structure and the promotion of energy conservation and emission reduction,the global market demand for clean energy is increasing,and the development speed of the coal industry is slowing down.In terms of our country’s coal market,under the background of achieving carbon peak and carbon neutralization goal,the proportion of consumption of coal resources decreased,and the usage and proportion of clean energy increased gradually.Although the coal-based energy structure is difficult to be fundamentally changed in the short term,the extrusion effect on the coal will gradually appear.The coal industry has been affected and accelerated the industrial upgrading of enterprises.While meeting the challenges,enterprises should seize the opportunities and seek the development path suitable for themselves.As a wholly-owned subsidiary of Luan Group,a key enterprise in the coal industry,Lu’an Enviromental Energy enjoys a certain position in the coal industry relying on its coal resources,marketing channels,technology research and development and brand advantages.The financial performance evaluation of Lu’an Enviromental Energy can help enterprises understand their operating conditions,and timely discover and solve problems.With Lu’an Enviromental Energy as the research object,this paper studies the financial performance evaluation of Lu’an Enviromental Energy by using literature analysis and case analysis.Firstly,the background of the topic selection,the purpose and significance of the research are sorted out,the literature related to financial performance evaluation at home and abroad is classified and summarized,the research content and methods of the paper are introduced,and the relevant theoretical basis of financial performance evaluation is introduced.Secondly,this paper summarizes the Lu’an Enviromental Energy ring can development present situation,and through the balance sheet,income statement and statement of cash flows to Lu ’an Enviromental Energy can basic financial situation analysis,to later financial performance evaluation.Then,according to the characteristics of the mining industry where Lu’an Enviromental Energy is located and the accounting item adjustment principles,the projects that need to be adjusted are selected.The adjusted net operating profit,total capital and weighted average cost of capital of Lu’an Enviromental Energy in the past six years are calculated.Finally,the EVA value of Lu’an Enviromental Energy in the past six years is calculated.Finally,in order to enhance the persuasion of Lu’an Enviromental Energy’s financial performance evaluation,based on the EVA numerical calculation results,we analyzed the key driving factors of EVA,decomposed the key driving factors one by one,and determined the key factors affecting EVA.Finally,according to the result of factor analysis,the paper found out the problems in the financial performance of Lu’an Enviromental Energy enterprises,and put forward some suggestions to improve Lu’an Enviromental Energy’s financial performance.