| A scientific and objective evaluation of an enterprise’s financial performance can help corporate managers understand the company’s actual operating conditions and performance levels.In view of the increasingly severe competition environment,scientific and effective financial performance evaluation methods are particularly important for enterprises.The traditional financial performance evaluation method based on net profit cannot accurately reflect the true performance of the company because it ignores the role of equity capital.The performance evaluation method based on EVA focuses on the company’s net profit while considering the cost of the company’s equity capital.It is believed that the capital invested in the enterprise also has a cost,which can more accurately reflect whether the value of the enterprise has increased,and overcome the shortcomings of the performance evaluation method with net profit as the core.This article takes A appliance company as the research object,and points out that the current performance evaluation method of A appliance company with net profit as the core has the problems of neglecting equity capital cost and distorting accounting profit.Use the factor analysis method to analyze the factors that affect EVA,find out the key factors that affect the EVA value of A electric company,and find a way to improve the EVA of the enterprise.This article is mainly divided into six parts: The first part is an introduction,through reading a lot of literature to understand the current status of performance evaluation and EVA performance evaluation at home and abroad;the second part introduces the relevant theory of EVA performance evaluation;the third part will A As a case study enterprise,electrical appliance company analyzes the shortcomings of the current performance evaluation method of electrical appliance company A.There is the possibility of artificial manipulation of corporate profits.Without considering the capital cost of the enterprise,it is easy for managers to ignore short-term benefits,and proposes to introduce EVA The necessity of performance evaluation;the fourth part is to calculate the EVA of A Electric Company in the past five years and evaluate itsfinancial performance.It is found that after deducting the entire capital cost from the net profit of A Electric Company,the shareholders’ investment has obtained a net return,and The net return is increasing year by year,but the growth rate of EVA is fluctuating,and there is a big instability.Therefore,in order to help enterprises to steadily improve EVA,through the use of factor analysis to analyze the driving factors of EVA,it was found that the main factors affecting EVA of A electrical company are direct materials,office expenses,business entertainment,research and development expenses,capital turnover rate,sales revenue and Capital Structure.The fifth part,according to the analysis results of the influencing factors of EVA,puts forward suggestions that can improve the EVA of A electrical company.Control the cost of raw materials by controlling the purchase cost of raw materials and reducing production losses,properly control office expenses and business entertainment,increase R&D investment,increase capital turnover,and appropriately increase debt capital to optimize the capital structure;Part VI,conclusions and prospects,Propose the main research results of this article,point out the deficiencies in the research process,and put forward hope for the future. |
