Researching On Financial Performance Of Company C Based On EVA

With the change of economic and market environment,textile and clothing industry urgently needs to improve the management mode to adapt to the changing internal and external conditions.The improvement of enterprise management mode requires scientific,reasonable,and adaptable financial performance evaluation to the internal and external economic environment of the enterprise as the guidance and basis for decision-making.At present,the financial performance evaluation method adopted by most textile and garment enterprises is the traditional Dupont analysis system.Although the system is easy to understand and can show the business situation of enterprises to decision-makers intuitively,it also exposes its limitations.This is because Du Pont analysis system takes net profit as the core and ignores the risks of invested capital when evaluating the financial performance of enterprises.Under the current complicated economic environment,it is difficult to provide effective guidance for the goal of maximizing shareholder wealth.The financial performance evaluation system with EVA as the core,combined with the analysis of certain non-financial indicators,considers the efficiency of capital investment on the one hand and the risk of capital investment on the other in the process of financial performance evaluation.Taking this as the guidance of business decision-making,enterprises can effectively adapt to the new economic situation.This paper takes C company in the textile and clothing industry as an example,uses the financial performance evaluation system with EVA as the core,analyzes the financial performance of C company from 2017 to 2021,finds the existing problems in the financial performance of C company,and puts forward solutions to these problems.By studying the EVA financial performance of Company C,this paper finds that there are some problems in the financial performance of Company C,such as insufficient profitability,insufficient development ability,unreasonable capital structure,low operating efficiency,etc.According to the causes of these problems,It puts forward some solutions such as optimizing capital structure,controlling cost and expenses,improving capital operation efficiency,increasing R&D investment,increasing advertising and marketing investment,optimizing talent structure and so on.This study will provide important reference for textile and garment industry to improve financial performance and business decision-making.In addition,the promotion of the financial performance evaluation system with EVA as the core is not only conducive to the development of the textile and apparel industry,but also has a positive effect on the longterm development of the entire manufacturing industry.At the same time,this paper also has certain reference significance for the research related to the financial performance of the apparel textile industry.