EVA-based Financial Performance Promotion Strategy Analysis Of HZJ Company

The construction industry is one of the pillar industries about national economy and people’s livelihood in our country.However,with the acceleration of the reform process in our country in recent years,the construction industry in the expansion of scale,increase in output value,but also exposed the poor profitability,which seriously hindered the development of our construction industry.At present,HZJ company still uses the traditional financial performance evaluation method,there are some problems such as neglect of equity capital,can more accurately assess the financial performance of HZJ company Status Quo,effectively avoid the company’s short-sighted behavior,conducive to the long-term development of the company.In this paper,large state-owned enterprises HZJ company as a case study.First of all,through reading many foreign and domestic related literature,the research results of these literature,were integrated combing,then introduced related concepts of financial performance,EVA index method,At the same time,it expounds the methods of financial performance evaluation,And thus laid the relevant theoretical foundation of this paper.Then it introduces the basic situation of HZJ company and its industry,and analyzes the present situation of financial performance of HZJ company from four aspects of ability,this paper selects two EVA core indexes: This paper compares the traditional financial performance method with the EVA financial performance method,and finds out the causes of the main problems that affect the EVA value promotion of HZJ company,the following strategies are obtained:(1)optimize capital structure;(2)strengthen asset management;(3)enhance the profitability of the company;(4)strengthen the growth space of the company;(5)improve the performance incentive mechanism.Finally,according to the analysis of HZJ Company’s financial performance problems in EVA index system,put forward relevant suggestions and countermeasures to HZJ company to improve its financial performance.Through this research,we can help the leaders of HZJ company deeply understand the company’s financial situation and capital operation,so as to make correct management decisions and help the company to improve its own shortcomings and deficiencies,to help managers to develop a long-term strategy to increase the competitiveness of the market,It is also a good example for the construction industry,and it will promote the healthy development of the industry and enlarge the space for development.