The Performance Evaluation Design Research Of D Co.,LTD.

The EVA index is a novel ideas in performance evaluation index,it centered on the cost of capital,attaching great importance to the enterprise value creation,focusing on the development of the main business situation.EVA changes the traditional thinking of that using net profit to evaluate a company's operating performance.As gradually in-depth understanding for EVA of the SASAC,they found the shortcomings of traditional evaluation index——It cannot really reflect the current value of the company and the shareholder wealth.Later,state-owned enterprises began to pilot implementation of EVA,and realize the advantages of EVA.Until now,EVA in the state-owned enterprises gets comprehensive application.EVA has been widely used in the listed companies,Based on the above two properties of the company for the use of EVA,it can show that EVA compared with the traditional performance evaluation,there will be a merit.Therefore,this paper aims at adding EVA to company's existing performance evaluation system,building a new performance evaluation system to help managers to have a correct understanding of enterprise management.The research object of this article is D co.,LTD.Base on analysis of the theory of EVA,choosing two indicators : the EVA and EVA growth rate.Then,selecting the appropriate financial indicators and non-financial indicators.Next,we make a combination of the EVA index,financial indicators and non-financial indicators to a performance evaluation system,and applied it to the management of the company.Finally,we hope this performance evaluation system can give multiple perspectives and all aspects of the evaluation for operating conditions of the D co.,LTD..After the new performance evaluation system is applied to this company,and get the corresponding calculation,we find that EVA value and net value change show similar trends.Therefore,the calculation results of the two indicators can help managers to make comparison analysis and evaluation for company's operating performance.According to the characteristics of the EVA index and application effect of the EVA performance evaluation system,can be concluded that EVA can help enterprise managers to face the economic value added,know the real operating conditions of enterprise,can also according to the results of comparative analysis with traditional financial metrics to improve the operation and management,and improve market competitiveness,increasing the enterprise value,make a revelation to the type of private enterprises.