Research On The Application Of EVA In The Performance Evaluation Of Enterprise A

In enterprise management,performance evaluation is a more important content.At this stage,the performance evaluation methods of most enterprises in China are not perfect.Most of them are profit centered performance evaluation systems,which have inevitable limitations.EVA is an important performance evaluation method,which can objectively and truly reflect the operating conditions of enterprises,pay attention to protecting the rights and interests of shareholders,and promote the long-term development of enterprises.Enterprise A is a construction enterprise in China.The current performance evaluation system of enterprise a takes profit as the focus of enterprise performance evaluation,and there are many problems and defects.According to the actual financial situation of enterprise A,this paper applies EVA to enterprise performance evaluation,and provides reasonable suggestions for enterprise A to introduce EVA performance evaluation method,so as to protect the interests and long-term development goals of enterprise A.Firstly,this paper expounds the related concepts and theories of performance evaluation and EVA.Secondly,taking enterprise A as an example,this paper analyzes the current performance evaluation system of enterprise A,and discusses the problems existing in the current performance evaluation system of enterprise A.Thirdly,it puts forward how to reasonably use the enterprise performance evaluation method based on EVA,combined with the actual situation of enterprise a,adjusts important accounting items,introduces the adjusted calculation items into relevant data,establishes enterprise A performance evaluation system based on EVA,and compares EVA with traditional performance evaluation indicators such as net profit and return on net assets.Finally,it provides reasonable suggestions for a enterprise to introduce EVA performance evaluation method.It is found that the profit centered performance evaluation system adopted by enterprise A at the current stage has some problems,such as ignoring the cost of equity capital and the value of intangible assets,manipulating accounting profits and ignoring long-term development,which can not objectively reflect the real business situation of the enterprise.EVA performance evaluation system takes into account the capital costs such as debt capital and equity capital of enterprise A,can objectively reflect the relevant rights and interests of stakeholders of enterprise A,and can accurately evaluate the ability of enterprise to create value.At the same time,by studying the EVA data of enterprise A,we can find that the enterprise has a certain ability to create value for shareholders,and has further room for improvement in the future.