Research On Financial Performance Evaluation Of Yili Group Based On EVA

The rise of domestic emerging dairy enterprises and the continuous entry of imported dairy enterprises into the Chinese market have intensified the competition in China’s dairy industry.A scientific and reasonable performance evaluation method is not only the main basis for business managers to make business decisions,but also a necessary condition to help enterprises gain advantages in the fierce competition.Scientific and reasonable performance evaluation methods can promote the sustainable development of enterprises and urge enterprises to consolidate and strengthen their influence in the market.In 2010,EVA,as a new performance evaluation method,was applied by SASAC to the performance evaluation of central enterprises,and achieved good results.However,this performance evaluation method has not been widely used in the dairy industry,and many dairy enterprises are still using traditional performance evaluation methods to evaluate their performance.Yili Group is a representative enterprise in the dairy industry.At present,the traditional performance evaluation method still used to evaluate the business performance of enterprises is obviously difficult to meet the needs of financial management at the present stage.Enterprises should build more advanced financial management concepts to meet the pace of enterprise development.Therefore,this thesis takes Yili Group as the research object to evaluate the enterprise performance.First of all,this thesis analyzes the current situation of performance evaluation of Yili Group,and finds the limitations of enterprise performance evaluation,such as ignoring the cost of equity capital,unable to pay attention to the long-term development of the enterprise and so on.Secondly,it analyzes the necessity and feasibility of introducing EVA into Yili Group for performance evaluation,and adjusts the financial data of Yili Group from 2016 to 2020 according to EVA accounting adjustment principle,calculates EVA,and analyzes the operating efficiency of Yili Group based on EVA.Then,the traditional financial indicators and EVA indicators are compared and analyzed,which reflects the advantages of EVA indicators,such as more real reflection of corporate performance,more objective reflection of the enterprise value of shareholders holding each share and so on.Finally,the conclusion of this thesis is drawn,that is,EVA indicators can solve the limitations of traditional financial indicators in performance evaluation,the use of EVA to evaluate enterprise performance is more objective and accurate,and the use of EVA for performance evaluation can better coordinate the interests of all parties in the enterprise.And put forward the countermeasures and suggestions for the implementation of EVA performance evaluation,including the comprehensive implementation of the concept of EVA,the implementation of EVA salary incentive mechanism,the establishment and improvement of EVA performance management monitoring system and so on.Through the specific analysis of Yili Group,this thesis obtains the advantages of EVA performance evaluation method compared with the traditional performance evaluation method.In the increasingly competitive market,using EVA performance evaluation method to evaluate the performance of enterprises can make the results of performance evaluation more comprehensive and reasonable,reflect the operating conditions of enterprises more truly and effectively,and encourage managers to create higher value for enterprises.The research not only has practical significance for the optimization of performance evaluation of Yili Group,but also has reference significance for enterprises in the same industry.