Research On Financial Performance Evaluation Of Changhong Company Based On EVA

Our country’s home appliance industry has made great progress and development in the course of decades of development,and has become one of the largest home appliances production countries in the world.However,in the context of rapid economic development and rising income levels of the people,the industry is facing many difficulties such as "market saturation","fierce competition","high concentration","lack of core technology",and "poor innovation capabilities".The research object of this article,Sichuan Changhong Company,as a representative enterprise in the industry,is also in the same situation,having a long-term continuous loss period.The company has long been deployed in high-tech intelligent fields such as artificial intelligence,new energy,Internet of Things,big data,etc.In recent years,it has made major breakthroughs in core technologies in related fields,and at the same time has a large amount of research and development expenditures every year.In this context,how the company’s financial performance level needs to be studied in depth.This article first sorts out a large amount of literature about financial performance evaluation and EVA and summarizes it.Then a brief introduction was made to the basic situation and business development history of Sichuan Changhong Company.Then use the current methods to evaluate the company’s financial performance.General problems of the company’s financial performance were found in the evaluation: the company’s operating capacity is acceptable;development capacity is average;profitability is poor;debt solvency has continued to weaken.At the same time,it is also found that the current financial performance evaluation methods cannot reflect the company’s true value creation ability due to the fact that the current financial performance evaluation methods pay too much attention to the data in the financial statements,ignore the capital cost of the enterprise,and the financial indicators are not suitable for the actual situation of the company.In the current financial performance evaluation system,the advantages of EVA have not been reflected and need to be further improved.After that,model design and system construction were carried out on the performance evaluation of Sichuan Changhong Company based on EVA.The designed model framework has made necessary adjustments on the basis of the basic framework of the SASAC’s economic value-added performance evaluation mechanism,avoiding the shortcomings of "oversimplification" and "one size fits all",and can more truly reflect the financial performance of Sichuan Changhong Company.On this basis,a new EVA evaluation system was used to implement EVA-based financial performance evaluation on Sichuan Changhong Company.During the evaluation process,some deep-seated problems of the current financial performance evaluation methods were discovered,the causes of related problems were analyzed,and corresponding solutions were proposed.Finally,for the company’s application of the EVA evaluation system,safeguard measures such as establishing and improving the accounting information system,unifying EVA adjustment projects,strengthening the company’s overall emphasis,and establishing an EVA incentive mechanism are proposed.This article has deeply studied the financial performance of Sichuan Changhong Company,and based on the design of the EVA financial performance evaluation system,applied EVA to conduct a comprehensive financial performance evaluation on it,found the problems that the traditional evaluation system could not show,and gave Some reasonable suggestions.The research in this article has reference significance for the household appliance industry and other large and medium-sized state-owned enterprises to apply EVA for financial performance evaluation.It has great reference value for the frame design of EVA,which is conducive to the healthy and stable development of related industries and promotes the progress of my country’s economy.