Construction And Application Of WFZ Company’s Operating Performance Evaluation System

In today’s competitive environment, in order to acquire and maintain the long-termcompeting advantages and the abilities of creating value, some enterprises take EVA into thearea of evaluating the operating performance. This index plus the concept of Capital Cost,and brings in Expenditure Adjustment which benefit the enterprise in the long-run. Taking"the Enterprise Value Maximization" as the goal, the value oriented managers of thesecompanies change their attention from making more net profit to creating more value for theshareholders.Based on the essential of EVA, this paper launches the research in two ways:measurement and evaluation. Though introducing the evaluation the progress of the methodof EVA, this performance evaluation model would become our country school runenterprises’ realistic and inevitable choice. We make the empirical analysis on theperformance of one school run enterprise by EVA evaluation, and then compare amongother enterprises’ performance to further explain the superiority in performance evaluationof this index. We analysis the financial management behavior based on EVA guidance.This paper starts from the yearly financial report of the example school run enterprise--WFZ company. Using the basic idea of EVA accounting adjustment, it then capitalize theresearch cost and the training cost, and put through the adjustment of related projects toestablish the financial index system where EVA is core. By comparing EVA with net profit,we take the performance evaluation model into the area of the domestic school runenterprises to compare and analysis the real value of these school run companies, and finallyanalysis the superiority of this model.