Research On Performance Evaluation Of JP Company Based On EVA

Enterprise performance is the core performance of the competitiveness of enterprises,which can directly reflect the operation and management of enterprises.Performance evaluation is helpful for enterprises to comprehensively analyze the operation status and the effect of fund allocation,to test whether the strategy implementation contributes to the operation performance,to reflect the problems existing in enterprise management,to help enterprises consolidate and strengthen their own advantages,and to promote sustainable development and enhance competitiveness.As a new energy company,JP still adopts the evaluation system under the traditional mode,which has many problems and shortcomings: too much emphasis on financial indicators,unable to achieve comprehensive evaluation;unreasonable performance evaluation mechanism;not considering the confirmation and measurement of equity capital cost,etc.These problems may lead to the short-term operation of enterprises,affect the long-term development of enterprises,so that enterprises do not consider the efficiency of capital use when investing,resulting in blind investment,duplicate investment,capital efficiency is not high.Therefore,it is necessary to introduce economic value added to analyze and solve how JP company should measure business performance more effectively and improve the efficiency of economic operation.Firstly,this paper combs the research results of domestic and foreign scholars in this field.Then,based on the actual situation of JP Company,it analyses the current situation of performance evaluation,puts forward the existing problems of performance evaluation,and then puts forward the necessity of introducing EVA.When calculating EVA,we adjust the accounting items according to the actual situation of JP company,select the financial data from 2014 to 2017,calculate it with the adjusted EVA calculation method,and compare the value of EVA with the representative traditional financial indicators.By introducing EVA index,benefit index and three non-financial indicators of innovation ability,personnel management and social responsibility,the right of each index is determined by analytic hierarchy process,and the performance evaluation system of JP company based on EVA is constructed.Then the system is applied to JP company to obtain the performance evaluation score,and the system is compared with the current performance evaluation system of the company,emphasizing that the EVA system is in the performance evaluation.Finally,the paper draws the conclusion that JP company implements the safeguard measures of performance evaluation system based on EVA.Through the research,it is found that the EVA performance evaluation system is more scientific and accurate than the current performance evaluation system of the company.It is more conducive to the analysis of the long-term interests of the enterprise,and more conducive to the operators and decision makers of the enterprise to make decisions conducive to the operation of the enterprise,so as to promote the growth of the enterprise.