Research On Financial Performance Of Company B Based On The EVA-SGR Matrix Model

The textile and garment industry has been slowly recovering in recent years after the weak consumer capacity and the COVID-19 epidemic.However,due to the complexity of the economic system,the traditional financial performance evaluation methods are no longer suitable for the current needs of investors and operators,and more reasonable and in-depth financial performance evaluation methods are needed to adapt to the development of the textile and clothing industry.Among them,Economic Value Added(EVA)comprehensively considers the use cost of equity capital and debt capital,and judges whether an enterprise creates value in the process of operation for a period of time;The relationship between the actual growth rate of an enterprise and the sustainable growth rate(SGR)can be used to judge whether the company’s operating income growth is reasonable and effective and the use of company funds.There is a close relationship between economic value added and sustainable growth,which can make up for each other’s shortcomings and more objectively evaluate the company’s financial performance.This article uses literature research on the relevant theories of EVA model and SGR model as the theoretical basis,and combines it with case analysis to quantitatively analyze the relevant data of Company B from 2017 to 2021.Firstly,traditional performance evaluation methods are used to analyze the debt paying ability,operational ability,profitability,and development ability of Company B,and summarize the shortcomings of traditional financial performance evaluation;On this basis,the necessity and feasibility of financial performance evaluation using the EVA-SGR matrix model are discussed.The EVA-SGR matrix is constructed and the financial performance of each year in different quadrants is analyzed.The financial performance of Company B is summarized,including a small investment in research and development expenses,a high proportion of internal financing,risks in model expansion,and a return to the recovery of main business income;Finally,according to the results of performance evaluation,the paper puts forward suggestions for improving the company’s financial performance,including increasing R&D expenditure,enriching the company’s financing policies,improving the total Asset turnover and correctly understanding the multi brand strategy.At present,there are few cases of using EVA-SGR matrix model to evaluate the financial performance of companies in the textile industry.It has certain reference value for companies in the same industry to use this model,providing management advice for operators,completing the next step of decision-making,and providing investment reference for investors to avoid blindly following the trend.