Research On Performance Evaluation Of China Eastern Airlines Based On EVA

With the rapid development of China's economy,today's air transport market has also become increasingly prosperous.In 2013,the Civil Aviation Administration liberalized the access permit for the air transport industry.Under the liberalization market conditions,the admittance of admission permits the formation of a group of small airlines.Since 2013,Chinese aviation companies have jumped from 36 to 51.During this period,the airlines formed by non-four major airlines contributed mainly to the five-year increase in air transportation capacity.In the fierce market competition environment,the managers and investors of aviation companies began to realize the importance of performance evaluation system.Therefore,it is very important to choose appropriate performance evaluation methods.In the commonly used method of corporate value assessment,the theory of Economic Value Added has received increasing attention.In assessing corporate performance,economic value added not only focuses on “accounting” profits but also on the utility of equity capital costs.This article attempts to use the economic value added method to evaluate the company's business performance.This article involves six parts.The first part is the introduction,which mainly expounds the background and significance of this topic,the research status at home and abroad,and the research content and structure of this article.The second part is an overview of the related theories of performance evaluation.It introduces the concept of performance evaluation,the method of EVA performance evaluation,and analyzes the advantages and disadvantages of using EVA performance evaluation methods.The third part analyzes the internal and external environment of Eastern Airlines.The external environment is mainly the industrial environment.The internal environment mainly includes the analysis of the profitability of Eastern Airlines and the financial analysis of Eastern Airlines based on DuPont analysis.The fourth part is to evaluate and calculate the performance of Eastern Airlines under the economic value added method.The fifth part is the recommendation for the performance evaluation of China Eastern Airlines.The sixth part is the conclusion and outlook.By using EVA performance evaluation method to evaluate the performance of China Eastern Airlines,we find that using the traditional method of financial indicators to evaluate Eastern Airlines we will ignore the impact of foreign exchange loss.EVA's performance evaluation method not only allows companies to pay attention to the cost of capital,but also can understand the business situation of the company more clearly.