Research On The Ways Of Improving The Income Of China's Xidian Shareholders Based On EVA

How to analyze and evaluate the financial performance of the company is one of the important issues in the field of financial management. As EVA deducted the capital cost of shareholders’ equity, EVA is essentially an economic profit. In the process of EVA calculation, the items of balance sheet and profit and loss account are adjusted to make the adjustment of the EVA’s performance. In the end of the 20th century, The profit of the enterprise is closer to the economic profit than the accounting profit, which can reflect the real operating performance of the enterprise and the true value created for the shareholders.In this paper, the traditional performance evaluation method is used to research and analyze the CHINA XD, which is the listed company in China. The results show that: from the perspective of asset occupancy, CHINA XD is a typical manufacturing industry, accounting for a higher proportion of fixed assets in recent years. Research and development, the company’s relatively high proportion of intangible assets, the company has a certain industry technology, talent competitiveness. From the source of assets, CHINA XD sources of financing to direct financing equity financing mainly to indirect financing debt financing to supplement the debt financing mainly in short-term loans. From the operating point of view, CHINA XD profit increased significantly year on year.Secondly, on the basis of the analysis of CHINA XD, this paper selects the samples and financial data from the listed companies. After confirming the adjustment items, it estimates the EVA of CHINA XD from 2010 to 2014, and the results show that since 2011, EVA of CHINA XD is negative, in the same industry to lose advantage. Further study found that the proportion of money and funds is too high, the accounts receivable balance is too high, the inventory turnover rate is low, management costs continue to rise, equity capital expansion are major factors leading to EVA of CHINA XD is too low.Thirdly, on the basis of the factor analysis, the paper puts forward the way to enhance the shareholders’income. Including: to improve product sales net profit margin, increase net profit, improve asset turnover efficiency, appropriate increase in debt, reduce equity costs, optimize the capital structure, to encourage research and development. Finally, the corresponding measures are put forward to improve the shareholders’ income, which include reestablishing the target of corporate finance, reshaping the idea of creating value for shareholders, establishing a strict financial system and perfecting the organizational structure of the company.