Research On BYD’s Financial Performanc Evaluation Based On Momentum Of Economic Value Added

For an enterprise,regardless of management or development,the practical significance of performance evaluation is obvious.As an important part of business management,companies control the quality of operations,complete strategic goals,and achieve year-end performance.The basis for judgment is the result of performance evaluation.Reflecting the total number of indicators,ignoring the ability to create value,and insufficient early warning of performance changes,are the shortcomings of most traditional performance evaluation indicators,resulting in the failure of real decision-making information to be effectively exposed to stakeholders.Nowadays,when "corporate value" is continuously being widely promoted and accepted,it is particularly important to get rid of the mystery of "corporate value" and reveal the value created by the development of enterprise production.BYD is the world’s leading manufacturer of new energy vehicles.From 2013 to 2014,BYD’s economic value added was negative,indicating that it failed to create value wealth for shareholders,while the momentum of economic value added,which represents the efficiency of corporate value creation,continued to be positive,indicating that its own value creation ability has improved.The scale orientation of economic value added is“corrected” when the momentum of economic value added is adopted.Although shareholder value has not been created at this time,its value creation ability has been continuously improved,and BYD’s value creation ability has been objectively evaluated,which ultimately promotes BYD’s economic growth.The total value continued to increase and turned from negative to positive in 2015-2016,truly creating value and benefits for shareholders,but showed volatility in 2017-2019..Under the guidance of the modern mainstream operation and management goal-enterprise value maximization,enterprises not only need to pay attention to economic value added,but also need to pay attention to the momentum of economic value added and the changes in corporate value creation capabilities revealed by it.The study found that:the momentum of economic added value guides enterprises to pay attention to R&D investment,grasp the direction of value creation ability,and enrich the core competitiveness;the momentum of economic added value makes the performance of managers operating enterprises truly visible,and a reasonable evaluation of the efforts of managers is also conducive to motivating them Make more decisions and behaviors that are in line with the creation of corporate value;the momentum of economic value added supplements the company and provides a new performance evaluation system.The decomposition and analysis of the momentum of economic value added can provide a basis for the company’s analysis of current business problems that may exist and provide a basis for reference.Business management can also be supplemented and improved in the process of improving and optimizing value creation capabilities.