Operation Performance Evaluation Of L Chemical Company Based On EVA

In recent years,due to the domestic state-owned enterprises generally lack of awareness of capital costs and blindly pursuit of scale expansion,the problems of the decline in use efficiency of shareholder funds getting worse which makes it difficulty to achieve the objective of maintaining and increase of state-owned capital.In order to solve this problem effectively,the SASAC focused on a value management tool--EVA,which is popular in the west capital market.And SASAC introduced the Interim Measure of Operation Performance Evaluation in Central Enterprise in 2009 to promote the application of EVA performance evaluation method in state-owned enterprises.L chemical company,as an important local state-owned enterprise in the region of Luxi,Shandong,its healthy and sustainable development is vital important to the future of local economy.But,now,the method of L chemical company's performance evaluation tends to the traditional performance evaluation model.The traditional performance evaluation model cannot truly reflect the enterprise business performance because of the inherent limitations which lack of capital cost consciousness and value creation idea.It also makes more prominent problem of inefficient investment in a company.The superiority of the EVA is the elimination of all capital costs,so that it can demonstrate the true value of the company and improve the use efficiency of shareholders' funds.This article focuses on the background of the full implementation of EVA performance appraisal by the SASAC,according to the basic principles of the EVA business performance evaluation method,and combines the actual situation of L chemical company to determine the accounting adjustments and capital costs,and to obtain the EVA calculation formula.And this thesis uses EVA to evaluate the performance evaluation of L chemical company.The index is analyzed by comparison with net profit and equity profitability index after obtaining the EVA value from 2013 to 2016,the results prove that EVA index can appraise the performance situation and inhibit the investment behavior of the enterprise.In addition,this paper also proposes the key steps in the effective implementation of EVA in L chemical industry.It includes comprehensive promotion of EVA concept,integration of EVA indicators to business performance evaluation index system and implementation of EVA-based compensation incentive program.The efficient performance evaluation methods is adhere to the principle of step-by-step.And the scientificity and practicability should be improved to encourage operators to improve their profitability and value-creating ability.