Research On Financial Performance Evaluation Of A Company Based On EVA

In recent years,under the influence of COVID-19 and national policies,China’s magnetic materials industry is facing hitherto unknown pressure.Scientific and reasonable financial performance evaluation of enterprises is conducive to comprehensively judge the operation and management status of enterprises,find operation and management problems,reveal the risks faced,improve the value creation ability of enterprises and realize sustainable development.The current financial performance evaluation methods of domestic small and medium-sized enterprises are mainly the traditional methods based on financial indicators,aiming at maximizing accounting profits,without considering the equity capital cost of enterprise investors,which is not conducive to reflecting the ability of enterprise managers to effectively use capital and create value for shareholders.The financial performance evaluation system with EVA as the core index comprehensively considers the cost of equity capital and debt capital,which is conducive to the comprehensive evaluation of the operation and management effect of enterprises,so that managers can make correct decisions,so as to improve the ability to create value for shareholders.Taking a company as an example,this paper uses the research methods of comparative analysis and case analysis to discuss the problems and cause analysis in the financial performance evaluation system with accounting profit as the core.According to the actual situation of company a,this paper constructs the EVA financial performance evaluation system by using the analytic hierarchy process.On this basis,the accounting subjects are adjusted and EVA indicators are calculated to evaluate the financial performance of company a from the aspects of profitability,operation ability,solvency,development ability and anti risk ability.It is found that the financial performance evaluation system based on EVA can reflect the business situation of enterprises more scientifically and reasonably than the existing financial performance evaluation system,which is conducive to enterprises to make scientific and reasonable business decisions and realize the sustainable development of enterprises.At the same time,it puts forward some safeguard suggestions for a company to better implement EVA financial performance evaluation system: cultivate professional EVA financial and management personnel and coordinate financial performance evaluation;Improve EVA financial performance evaluation process and integrate financial performance evaluation with operation and management;Establish a performance incentive mechanism based on EVA to improve employees’ work enthusiasm.