Analysis And Comparison Of EVA And NOPAT Based On Statement Of Financial Position

As a creative measurement of enterprise performance,there is no accurate answer about thecorrelatively between EVA and the company’s value.In the EVA of study, comparative analysis thecorrelation coefficients of EVA and NOPAT, to study whether EVA has explanatory power.Because ofcapital market is not mature in China, the correlation coefficient of value index of the capital marketabout EVA and other traditional financial indexes is much different from mature capital market,limiting the accuracy and reliability of this study method.The Statement Of Financial Position as a stateof business process of enterprise, the proportion of assets which is composed of the management stateof the enterprise.Using partial least-squares regression to establish the model can overcome the effectsof multi-correlation between variables。Regression analysis of EVA、NOPAT and19main assets branchaccount balances in Chinese100companies on the most EVA in2011.Using assets branch accountquality, the analysis focuses on examination ability about EVA compared with NOPAT. Then replacethe19main assets branch account balances with owed and ownership24main assets branch accountbalances.The result shows: The examination ability of occupancy proportion of assets branch account withEVA and NOPAT have different important point. Believe that EVA can be more accurately reflect theprofit level than NOPAT. For the long-term sustainable development of enterprises and preventshort-time profitable enterprise, EVA can not be replaced by other criterion. As try to use the partialleast-squares regression to establish the model to solve the effects of multi-correlation among thebalance sheet, for the accurate and reasonable interpretation of the explanatory variables and explainedvariables coefficients, the correlation analysis of EVA and NOPAT Based on Statement of FinancialPosition by partial least square method is feasible.