Research On Financial Performance Evaluation Of JY Company Based On EVA

With the rapid development of market economy,enterprises in order to speed up the development of their own at the same time,the need for their financial conditions and operating conditions with objective with a clear understanding of,but the net profit as the core of traditional financial performance evaluation method ignores the cost of equity,then influence the shareholders’ interests,also is unable to make the enterprise managers and investors to accurately grasp the enterprise operating performance comprehensively.Under the concept of modern enterprise management,maximization of shareholders’ equity is the ultimate goal of current enterprise management.Therefore,under this circumstance,the interests of all stakeholders are comprehensively considered,equity capital is deducted like debt capital,and EVA(economic added value),which takes into account the investment cost,can truly reflect the enterprise’s profit and is conducive to the comprehensive evaluation of the enterprise’s financial performance.Therefore,EVA began to receive extensive attention.It gave a comprehensive consideration to the cost of equity capital,and could show the actual profitability of the enterprise and prevent the short-term behavior of the enterprise.The traditional performance evaluation model USES the current accounting standards to design financial statements,and profit is the core of its evaluation method.However,the profit index may be manipulated,which leads to the lack of objectivity and accuracy of the traditional financial performance evaluation methods.So this evaluation method has not been in line with the longer-term pursuit of enterprises.The financial performance evaluation method based on EVA is based on the real profit of the enterprise.It comprehensively considers the pre-tax net profit of the enterprise and the input cost of the enterprise,avoids the possibility of manipulation,presents the current operating situation of the enterprise more accurately,and has a more accurate judgment on the value created by the enterprise.As a leading enterprise in the small household appliance industry,JY company still adopts the traditional financial performance evaluation method,which fails to reflect the company’s business performance and financial status objectively and comprehensively.This paper starts with the actual situation of JY company and mainly USES literature method and comparative analysis method to carry out the research.Firstly,the research background,research significance,research content and research methods are described.At the same time,the research status at home and abroad is reviewed.Secondly,it introduces the related theories of financial performance evaluation and EVA.Then,it analyzes the current financial performance evaluation method of JY company.Next,we evaluated JY’s financial performance based on EVA.Finally,after analyzing and comparing the financial performance evaluation of JY company,it reveals the problems existing in the financial performance evaluation of JY company,as well as improvement Suggestions and measures to ensure the implementation of EVA.Finally,the thesis is summarized.It is hoped that this study can be helpful for the development of JY company’s future development strategy,and can also be used as a reference case for other enterprises to learn from and contribute to the development of EVA concept.