Analysis On The Performance Of K Company Based On EVA And The Way To Improve Its Performance

Faced with the changing market environment and fierce market competition,how to effectively analyze and evaluate the business performance,to help managers make timely decision-making to achieve the maximization of shareholder value,become the focus of attention of managers.The traditional accounting basis of the financial indicators did not consider the cost of capital,it can not show the true business performance and shareholder interests.Economic value added as a comprehensive performance evaluation index which can reflect the ultimate goal of the enterprise can help managers to evaluate the actual situation of the enterprise performance from the shareholder's point of view,find the problems in the process of enterprise operation and seek new measures to enhance the performance of the enterprise.To this end,the paper on the application of economic added value for performance analysis and how to enhance business performance research.After reading a large number of literature,I found that domestic scholars on the economic value of the study focused on the norms,empirical research,too little attention to the actual case application.Based on this,this paper first introduced the theory of economic added value,including the meaning of economic added value(EVA),calculation formula,adjustment items and advantages,as a case study done pave the way.In the case study part,but also to the theory,based on the K company's data,the K company's EVA estimates.In the calculation of EVA,the paper did not use the SASAC on the central enterprises of the assessment methods,but based on the Shenzhen Composite Index and K company monthly closing price of the beta was measured for the calculation of equity capital costs,More objective and accurate data.In addition,through the interpretation of the accounting basis indicators and measured EVA value,the analysis of the enterprise's business status,then the article through regression analysis,mining the impact of EVA drivers for business managers to find problems in business and improve business performance Some reference.The recommendations of this paper are also applicable to similar enterprises in order to provide some reference for other companies in the same industry to enhance the performance of enterprises based on economic value added to achieve sustainable development.