Research On Financial Performance Evaluation Of HS Travel Company Based On EVA

With the increasing demand of Chinese people for cultural life,the social demand for high-quality tourism products brings a good opportunity for development to the tourism industry.However,due to the ups and downs of the international economic situation in recent years and the impact of the COVID-19 pandemic since 2020,travel companies have been hit hard.Therefore,it is particularly necessary to choose appropriate methods to analyze the financial performance of tourism companies and put forward targeted suggestions on improving financial performance for tourism companies to get rid of difficulties and achieve sustainable development.This paper takes HS Travel Company(hereinafter referred to as "HS Travel")as the research subject,takes financial performance evaluation as the research object,and uses literature research method,comparative analysis method and quantitative analysis method to study the financial performance of HS travel based on EVA.Firstly,the concept and composition of financial performance are explained,and the main methods of financial performance analysis such as EVA evaluation method,balanced scorecard analysis method and factor analysis method are introduced as well as the relevant theoretical basis,and the necessity of choosing EVA evaluation method to evaluate the financial performance of HS tourism is explained.Secondly,the basic information and main business status of HS tourism are introduced,and the financial status of HS tourism in the past five years is analyzed from the two aspects of financial statements and financial indicators,laying a good foundation for the following financial performance evaluation based on EVA.Thirdly,the financial performance of HS tourism was evaluated based on EVA evaluation method,accounting adjustment items were determined according to the specific operating conditions and financial status of HS tourism,and net operating profit after tax,total capital and weighted average capital were calculated to finally get the EVA value of HS tourism in the recent five years.Then,the calculated EVA index is compared with traditional financial indicators for vertical financial performance evaluation,and with Songcheng Performing Arts and China Youth Travel Service for horizontal financial performance evaluation.Finally,by evaluating the financial performance evaluation results of HS tourism based on EVA,it is found that the financial performance of HS tourism in the past five years has problems such as unstable profitability,unreasonable capital structure and low efficiency in the use of funds.Combined with the operating characteristics of HS tourism,This paper puts forward some suggestions on improving financial performance,such as enhancing corporate profitability,adjusting corporate capital structure,and improving the efficiency of using funds,in order to provide some reference for HS tourism and other companies in the same industry to evaluate and improve their financial performance.