Research On ALHALAL Company’s Financial Performance Evaluation Based On EVA

With the development of market economy, the enterprise’s financial environment is constantly changing and became more complex. Therefore, every country’s experts start to pay more and more attention to the company’s financial performance ability, operating efficiency and some other major aspects. Because the financial performance evaluation is helping for evaluation and summary the company’s financial condition and results of operations. Therefore, the financial performance evaluation for the company’s management, administer and the majority of investors is important.Currently the financial evaluation of business performance has been applied in many ways, and the study has achieved good results. Economic added value evaluation taking into account the cost of capital and investment capital and business profits. Moreover, evaluation results was better than the traditional ratio analysis, and it has received more attention. China SASAC in 2010 Economic Value Added(EVA) as a comprehensive assessment of the central business core indicators; and economic value added in 2013 to the development of enterprise performance evaluation assessment focus.In this article ALHALAL annual financial report data 2012-2014 was selected, firstly, operational evaluation method were studied based on traditional financial ratios of the four ALHALAL company solvency, profitability, cash flow, growth capacity. Secondly, according to the《Economic Value Added assessment rules》with the company’s 2012-2014 annual report the analysis was carried out considering the company’s net operating profit after tax and capital investment, and the economic evaluation of the added value was used and it gave us the ability to create the value of ALHALAL Company. The evaluation results of the two methods were compared by row.The results showed: firstly, the use of traditional financial ratio evaluation method in ALHALAL Company’s 2012- 2014 Annual Report to evaluate the company’s current ratio was increased year by year, and the asset-liability ratio was also increased year by year. In 2014, the company’s gearing ratio was 61%. Cash flow from the ability to see both accounts receivable turnover, inventory turnover and total asset turnover, the performance of both was not satisfactory, although they are fluctuations of equity, but the profitability, company’s sales margin and net profit margin all were ideal. In 2014, the sales margin and net profit margin were 7.23% and 11.93% respectively. The total assets net profit margin was reach the lowest level, but still reached 4.59%. Moreover, the company’s ability to grow was stronger than before. Secondly, by using economic value added evaluation analysis system, we found that the company’s EVA was decreasing year by year which was in 2012-9,068,373.93 Som, 2013-12,649,373.11 Som and in 2014 was-19,210,363.43 Som. This was because while the company’s net operating profit after tax was increased year by year, but the investment capital was occupied by high growth year by year making the company’s EVA decreasing year by year. According to the company’s financial performance year after year was obtained to get the difference instead of the traditional financial performance evaluation based on the ratio results. According to the Eva’s analysis system, this study suggests ALHALAL Company’s financial performance evaluation. According to the formation of the economic value added diagnostic system we can improve the EVA as the core of the evaluation system, establishment of EVAbased incentive and restraint mechanisms. Moreover, establish and improve the economic value added monitoring system perspectives and put forward the corresponding safeguards.I hope my study can provide new perspectives for Kyrgyzstan enterprise financial performance evaluation, and I hope too that I can play a good role of the ALHALAL company financial performance promotion.