Research On Financial Analysis Index System Based On EVA

The business performance and financial conditions of enterprise are the important factors that affect the survival and development,it is not only the basis of optimizing the allocation of resources but also the guidance that help the financial information users make more useful investment decisions. With the development of social economy, the traditional financial analysis index system shows its disadvantages. Because of this, exploring new financial analysis index system is especially important.Firstly, this paper carries on the literature review about EVA and financial analysis that scholars study. Secondly introduce the traditional financial analysis index and the theory of EVA and its unique advantages, finally defines financial analysis index system based on EVA. Then chapter introduces EVA into the original financial analysis system which tested by the financial data from company called SD and contrast traditional financial analysis index with the new financial analysis index based on EVA shows that the introduction of EVA index is scientific, feasibility and superiority and put forward suggestions. Thus, we hope that this paper not only can enrich and perfect the existing financial analysis system, but also can combine application of EVA with the concrete practice of China.