Application Of EVA In Performance Evaluation Of Household Appliance Manufacturing Listed Companies

As the cornerstone of modern industry,manufacturing industry is an important part of a country's economy.The household appliance manufacturing industry is an industry which is closely related to the daily life of the people in manufacturing,it is also one of the most rapidly developing and competitive traditional industries since the reform and opening up in China.With the revolutionary breakthroughs and cross-convergence of important areas and frontiers such as information technology,new energy,and new materials,the difference in the function of household appliance has been continuously reduced,the degree of brand aggregation has gradually increased,competition in this industry has become fierce increasingly,and business profits are getting smaller and smaller.Under such circumstances,companies need not only to focus on production and sales,but also to have dynamic information on corporate performance,they should adjust the deficiencies in the operation process based on the information and early warning timely,and then,the smooth operation of corporate strategic planning can be better protected.Therefore,the dynamic evaluation and empirical analysis of the performance of the listed companies in the household appliance manufacturing industry has a very practical significance.At present,the performance evaluation methods adopted by different listed companies in the household appliance industry are various,some of them have been unable to adapt to the current environment.In order to optimize and supply this industry's performance evaluation method,at the same time in order to facilitate horizontal comparison.This article takes the listed companies of A-share home appliance manufacturing companies in Shanghai and Shenzhen Stock Exchanges as the research objects,and conducts in-depth analysis on the performance evaluation of these companies.The research content is as follows:Firstly,several mainstream methods for assessing corporate performance are presented,including DuPont analysis which is based on return on equity,Tobin's Q value,Balanced Scorecard,and Economic Value Added.Combined with the characteristics of various research methods,this paper explains the reasons and feasibility of using EVA as this industry's performance evaluation method.Secondly,starting from the three components of the EVA calculation(ie,net operating profit after tax,total capital invested,and weighted average cost of capital),the contents and calculation methods of the accounting adjustments are separately introduced.The calculation principles of important variables(such as debt capital cost rate,equity capital cost rate,etc.)are described in detail.After summarizing,the evaluation model of EVA is obtained.Then we introduce the research sample of this article,calculate the EVA value of the listed company in the sample,analyze the reasons for the difference between the result and the traditional accounting profits,and make the recommendations.Finally,an enterprise performance evaluation model based on EVA is established,and some of the core financial indicators are selected for regression analysis to illustrate the impact of these indicators on EVA.The results show that the return on net assets,the turnover rate of total assets,and the growth rate of main business are all positively related to the EVA of the company,and the asset-liability ratio is negatively related to the EVA of the company.