Research On Financial Performance Evaluation Of CGSW Company Based On EVA

With the continuous development of socialist market economy,China’s food manufacturing industry is facing many pressures such as transformation and upgrading of industrial structure,increasingly strict market supervision and fierce competition within the industry.Food manufacturing enterprises should start from improving their own operational efficiency and management to survive,rather than relying on simple competitive strategies such as expanding their scale and using cheap labor.Financial performance is an important basis for measuring the level of business management,both the economic value added(EVA)and the balanced scorecard(BSC)are strategic tools to optimize the financial performance evaluation system of a company.Financial performance evaluation of food manufacturing enterprises can help them discover the shortcomings in management,allocate resources rationally,improve internal management,and provide references for making development decisions.Based on the literature review,this study firstly elaborates the basic theories of financial performance,it also introduce the idea of EVA and BSC to extend the connotation of the traditional financial performance concept to meet the needs of the new era and the new development pattern.Secondly,by means of theoretical analysis and expert interviews,a field study of the case company CGSW was conducted to identify the shortcomings of its current financial performance evaluation system and propose corresponding solutions.Thirdly,by analyzing the theories of EVA and BSC,the author gives ideas and approaches of applying both theories to optimize the evaluation of corporate financial performance,a theoretical relationship model is constructed.Fourthly,based on the theoretical relationship model,the financial performance evaluation index system of CGSW company that introduces EVA and BSC ideas is constructed considering the characteristics of food manufacturing industry and the actual situation of the case company.Fifthly,the Delphi method was introduced,and the financial performance evaluation index system of CGSW was optimized through two rounds of expert consultation.Sixthly,the author uses analytic hierarchy process and fuzzy mathematical theory to establish a comprehensive evaluation model of CGSW’s financial performance.Finally,the model was applied for empirical analysis,according to the results of the empirical analysis,the author gives suggestions to improve CGSW’s financial performance and measures to guarantee the smooth implementation of the new financial performance evaluation system.The results of the study indicate that the financial performance of food manufacturing enterprises includes both financial and non-financial factors,the financial factors can be measured by the financial dimension indicators with EVA as the core,while the measurement of non-financial factors can be achieved through the indicators from customer dimension,internal process dimension and learning&growth dimension.For the case company CGSW,indicators of the financial dimension,with a weighting of over sixty percent,is the key to determining the level of financial performance;in addition,non-financial-dimension indicators such as customer,internal process and learning&growth represent the long-term sustainable performance of the company and require equal attention.According to the evaluation results,CGSW’s financial performance in 2021 is good,while CGSW performed poorly on specific indicators such as quick ratio,market share,intelligent production ratio,R&D expense ratio,and percentage of knowledgeable employees.Therefore,CGSW should pay great attention and take targeted measures to optimize cash flow management,adjust marketing strategy,promote intelligent production,increase R&D investment,and enhance employee quality.