Study On Financial Performance Evaluation Of Midea Group On The Basis Of EVA

After over 30 years development,household appliance manufacturing sector that is representative in manufacturing industry has become the one of sectors that is competitive in international market.With large room for capacity and development,this sector has included many outstanding enterprises including the long-established and world-famous brands of Gree,Midea,and Haier,the local competitive brands of Fotile,ROBAM,Bear,as well as the emerging brand Mi.Each of them strives for a ground for themselves.The development of global internet economy and big data,and the changes of domestic policies on real estate business have exerted profound influence on domestic household appliance sector.In 2018,the demand for household appliances began to present negative growth which lasted till 2019.Besides,dividend in this sector is fading away.Therefore,what each enterprise needs to focus on is how to stably occupy market shares and improve own ability of profit acquisition.It is important,under such economic background,to practice financial performance evaluation.This thesis takes Midea Group which occupies important role in household appliance sector as object of study,and carries out evaluation and analysis of its financial performance.Through reading literature of financial performance evaluation,theories about EVA and its application,this thesis chooses 14 evaluation indexes with the focus on rate of ROI.Financial performance evaluation system of Midea Group is established with those indexes weighted by integrating AHP and entropy method,and efficiency coefficient method as comprehensive scoring method.By virtue of this system and The Standard Value of Enterprise Performance Evaluation,the comprehensive evaluation value of Midea Group is scored and the financial performance is analyzed comprehensively and separately through the score.Comprehensive analysis refers to analysis of comprehensive performance of finance and underlying reasons over the past 5 years according to the comprehensive evaluation value.Separate analysis will,through trend analysis method,focus on five evaluation indexes—value creation,profit acquisition,operation,debt repayment—for the status of those indexes in different periods so as to find out the problems of Midea Group in development process and to propose some suggestions for improvement of financial performance.