Research On Financial Performance Evaluation Of M Company Based On EVA

With the continuous development of China's market economy,the traditional indicator analysis model with net profit as the core is difficult to explain the cost of equity scientifically,which will inevitably bring significant defects to the evaluation system.For modern enterprise management,maximizing shareholders' equity is the ultimate goal of current corporate financial management.Under this theory,EVA(economic value added)has received more and more attention.There is a significant relationship between this concept and shareholders' equity.It fully considers the cost of equity capital and can show the true profit level of the enterprise.Better explore corporate value and prevent companies from neglecting long-term development behavior.In the past,the enterprise performance evaluation model mainly designed the corresponding financial statements according to the current accounting standards.The core of the evaluation system is profit,but because its profit indicators are easily manipulated by humans,this will inevitably lead to the corresponding performance evaluation system.Objectivity and scientificity are questioned.Such a performance evaluation model obviously cannot meet the competitive needs of contemporary enterprises.Based on EVA's financial performance evaluation model,taking enterprise profit as the core,considering the net profit before tax and the input cost factor of the enterprise,the possibility of human manipulation is reduced.It can more accurately reflect the company's current business conditions and accurately determine the value created by the company.This article takes M company as a typical case,mainly using comparative analysis method,field investigation method and literature method.Firstly,the research background,research purpose and significance,research status at home and abroad,and main research contents and methods are introduced.Secondly,the related concepts and theories of financial performance evaluation and EVA are introduced.Then,the financial status of M company is analyzed.The financial performance of M company was calculated and evaluated from the perspective of EVA.Finally,the problems in the current financial performance evaluation of M company were put forward.At the same time,the suggestions for improving the financial performance evaluation of M company based on EVA were put forward,and the full text research was also summarized.And analyzed its shortcomings.