Research On Improvement Of Performance Evaluation System Based On EVA Of S Company

For a long time,the traditional DuPont financial analysis always occupy the main position in the company's performance appraisal.However,with the rapid development of economic and financial management objectives turns to the maximization of shareholders' wealth,the core of management's attention has also turned to the creation and promotion of corporate value.The realization of the company's value is not only reflected by financial indicators,such as net profit and ROE,but also to measure the capital investment of shareholders.Economic added value(EVA)reflects economic profit,which is the income after deducting all the cost of equity from the net operating profit after tax.It is a kind of increment,which overcomes the disadvantages of the traditional performance evaluation method that does not eliminate the cost of shareholders in the calculation.Investors can make decisions through the calculation results of EVA.For the management of the company,they no longer blindly pursue high profits,thus make some shortsighted behaviors that damage the interests of investors.The performance evaluation method with EVA as the core appears in the new economic environment,and the company actively pursue the best performance results.Based on the EVA indicator and the business results reflected by the DuPont's financial analysis indicators of S Company,this paper proposes new ideas for the improvement of S company's performance evaluation system.Firstly,it collects the relevant researches of domestic and foreign scholars on the company's performance evaluation system in recent years and the theories involved in this study,laying a theoretical foundation for this paper.Secondly,from the perspective of current DuPont analysis method,analyze its ability to explain the performance of S company.Then,EVA was used to analyze the financial performance of the same fiscal year,find out the EVA's evaluation of the implementation effect of the company's strategy compared to the superiority of the current financial evaluation indicators,and demonstrate the necessity of introducing EVA.Finally,based on the analysis of the financial evaluation,comprehensively selection the EVA and current evaluation index of report data to the company.Selecting the most appropriate indicators for the actual operating results of the retail industry as the main evaluation indicators,and choose non-financial indicators from the perspective of suppliers,customers,employees to strengthen the company's organizational management capabilities.This paper aims to promote the process of EVA index into the performance evaluation system,to bring new ideas for the S company's performance evaluation system.