The Calculation Method Research On Economic Value Added Of Power Generation Enterprise

The core viewpoint of economic value added is that whether the profit a company gains covers its cost of capital.Compared with traditional performance evaluation indexes,the biggest difference of EVA lies in the fact that when gauging profit a company gains with EVA,it stresses that only after covering cost of debt capital and cost of equity capital is the profit left the real wealth created by the company for investors.At present,the main calculation methods of EVA in our country are standard methods of SASAC and CSMAR,the weakness of both of which is that they adopt unified standards in all industries.Though the "One Size Fits All" approach is easy to operate,it is unable to get accurate result of EVA.In other words,it can't really reflect the performance level of management of company,either.First of all,capital preservation theory is both theoretical foundation of EVA and essential theoretical basis of guidance throughout the paper.On the basics of capital preservation theory,the paper introduces the EVA Theory,and clearly defines its connotation.Furthermore,performance evaluation theory is introduced based on "4M" Theory of EVA,and also introduces the basic accounting theory which is about to refer to in the paper.Secondly,after introducing in detail the two EVA's calculation methods of SASAC and CSMAR,it puts forward the disadvantages of EVA's calculation methods at present with the combination of special profession characteristics in power generation enterprises.Thirdly,focusing on three major factors influencing EVA results,including NOPAT,TC and WACC,it expounds items should be adjusted when calculating EVA of power generation enterprises.According to sensitivity analysis method,seven specific adjustment items are listed,and an optimization model for EVA calculation of power generation enterprises is ensured.Fourthly,based on the case of Y power generation enterprise to calculate its EVA using three methods of SASAC,CSMAR and the optimized one respectively,it makes data analysis of their different results.It draws a conclusion that the optimized calculation method is more consistent with EVA value target for the power generation enterprise.Last but least,the paper also objectively puts forward the possible risks of the optimized EVA calculation mode during the further implementation.What's more,it puts forward corresponding security measures with pertinence,which improves its practical operability.To sum up,EVA assessment not only exerts the expansionary effect on the capital cost and value enhancement,but also meets real needs of enterprises,which helps to provide powerful references for EVA calculation of power generation enterprises.