EVA-based Financial Performance Evaluation Of Company X

In recent years,China’s rapid economic development,people’s living standards continue to improve,the car gradually popularized to thousands of households.From the perspective of social and economic development,the automobile industry is still a key force driving economic growth.In the context of globalization,the automotive industry needs to focus on how to gain competitive advantage.In the past few years,China has increased its focus on the new energy vehicle industry,and the amount of cash subsidies has soared to the fourth highest in the world,enhancing the bottom line of companies in the industry in terms of product development.The most reasonable way to evaluate the performance of the state’s inputs is to find the most reasonable way to evaluate whether they are really used reasonably and produce value,and among the many financial performance evaluation methods,the evaluation method based on economic value added(EVA)is more suitable because it not only takes into account the after-tax debt cost of creditors but also the equity cost of shareholders,and can reasonably measure the efficiency of inputs and outputs.Company X is one of the key new energy automobile enterprises supported by China,so it is important to evaluate the performance of Company X.The paper adopts EVA financial performance evaluation system to analyze Company X.Firstly,it introduces the concepts and theoretical basis of financial performance evaluation,EVA and government subsidies,followed by the analysis of the current situation of Company X’s financial performance,and then proposes the necessity of applying EVA performance evaluation method to Company X.Then,the EVA performance evaluation scheme is designed for Company X.The government subsidies are subtracted from the EVA calculation process,and the trend evaluation of the calculation results is carried out.At the same time,the propensity score matching method is used to select benchmark companies,and the EVA values of Company X are compared with those of benchmark companies horizontally,so that the problems and causes of Company X’s performance can be concluded and suggestions for improving the performance of the company are put forward.