Study On Financial Performance Of GS Railway Based On EVA

The economy has continued to decline,so we must maintain a competitive advantage and accurately assess financial performance to analyze business conditions and manage it effectively.EVA is a measure of the difference between traditional performance and the cost of capital.This will effectively reflect the company’s business profits,and comprehensively assess business activities,promote good development,and greatly enhance the competitiveness of enterprises.This paper takes GS Railway as the research object,tests the effectiveness of the company’s EVA financial performance evaluation,and tries to check its rationality.Through the analysis of the status of the GS railway performance evaluation system,it is found that the traditional evaluation system uses the net profit to study the problem,and then proposes the necessity of applying EVA,and uses the actual application to confirm the validity and rationality of EVA financial performance evaluation..Apply EVA to GS railway performance evaluation system,based on the calculation of EVA formula,compare and analyze the difference between EVA index and traditional financial indicators,and verify the advantages of EVA in GS railway financial performance evaluation.Using EVA to evaluate financial performance,some improvements were proposed to the GS Railway to verify the role of EVA in corporate management and protection of shareholders’ interests.Through research,EVA financial performance evaluation can be effectively applied to enterprises.This indicator has many advantages,not only can quickly find business weaknesses and value changes,but also it is not easy to whitewash corporate financial statements,which can truly reflect corporate profits.EVA plays an all-round role in corporate management,first identifying crises,preventing risks,and promoting corporate management.Meet the expectations of shareholders and the company,better manage the relationshipbetween the principal and the agent,reduce unnecessary losses,optimize the interests of both parties,and promote the company’s development.