C Company EVA Performance Evaluation Case Study

In the global economic environment has become increasingly severe,the increasingly fierce competition in the market today,truly comprehensive evaluation of enterprise performance level is to improve the enterprise competitiveness and the necessary way to realize enterprise strategy.China's traditional enterprise performance evaluation has can't meet the demand of modern enterprise development,a series of problems,such as:the lack of systemic financial indicators can't reflect the enterprise value,financial index and other non-financial indicators do not closely linked,index set is not reasonable,many indicators simply data was compared with the budget and so on.It is difficult to objective,reflects the business situation in a timely manner.Originated in the cost of capital of the EVA theory has been 200 years of history,it attaches great importance to the enterprise performance evaluation from the new Angle,the core idea is to measure the value of enterprise in a certain period of time to create.The emergence of EVA performance evaluation system and its application for the enterprise to solve the above problems.In this background,In this paper,the basic theory of EVA is expounded,including concepts,contents,methods and so on,And compared with DuPont analysis and balanced scorecard,EVA embodies the more comprehensive consideration of enterprise capital costs,through the adjustment of accounting items,so that accounting information more realistic,more reflect the true level of enterprise management,focus on the long-term development of enterprises,while easy to assess and so on.Second is the C company operating content,industry characteristics of a brief introduction,the C company EVA performance evaluation system case analysis,focus on the EVA performance evaluation process analysis,and through the 2013-2015 EVA calculation and compared with the traditional indicators,shows the C company EVA performance evaluation results application.In this process,we found the problems of C company EVA performance evaluation system,including insufficient indicators,lack of effective control of the C company's capital costs,inadequate participation of all staff members,and weak evaluation incentives.In this paper,the C company EVA performance evaluation of the existing problems analysis,put forward the corresponding improvement measures.In view of the lack of comprehensive evaluation indicators,through the combination of traditional financial indicators and non-financial indicators to improve;For C company's capital cost control is weak,through the strengthening of asset liquidation,improve the EVA adjustment items,adjust the cost of capital rate to improve;In view of the insufficient participation of all staff members,EVA can be strengthened by integrating it into the enterprise culture and forming a comprehensive management system;In view of the weakness of the evaluation incentive,this paper suggests setting up the incentive system of "no bottom no upper limit" and "prize treasury",and enlarge the incentive side.I hope this paper can provide reference for the implementation of EVA performance evaluation in similar state-owned enterprises.