Evaluate ZT's Financial Performance Under The EVA Method

In China,As a pillar industry,the coal industry plays a very important role in the economic development.In the new situation of supply-side reforms,new requirements of coal industry for de-capacity and deleveraging have also been put forward.Following by the continuous innovation of coal enterprises' models,Traditional methods of assessing financial performance can no longer meet the real needs of coal company development..Doing well in the transformation of coal enterprises' financial performance evaluation has positive significance for promoting the sustainable development of coal enterprises.As a new method of corporate financial performance evaluation,Economic Value Added(shortened by EVA)can be used not only as a financial performance evaluation index,but also as a decision-making tool.By adopting the EVA financial performance evaluation method,the enterprise can enhance the value of the enterprise and provide more reasonable salary incentives to the managers,which is conducive to the sustainable development of the enterprise.This paper will select ZT company as a representative of negligible and medium-sized enterprises in the coal industry,and will analyze ZT's current financial performance.Based on relevant theories of financial performance evaluation and in combination with the actual status of ZT's development,this paper will further give an analysis of ZT's current financial performance.In addition,the problems of financial performance evaluation will also be discussed.After comparing several financial performance evaluation methods which are used commonly,3 core EVA indicators and 6 auxiliary indicators can be picked out.With the help of the chain analysis method,an EVA financial performance evaluation system will be constructed for ZT Company.The chain analysis method is used as an indicator weighting method,and the formed indicator weights will reflect the importance of EVA financial indicators as well as the experience value of management probably.Finally,through the EVA system,ZT's comprehensive financial performance evaluation could be scored.pointing out the deficiencies of ZT's financial performance and the countermeasures to improve ZT's financial performance,providing reference for ZT's decision-makers in performance management decisions.