Research On Financial Performance Evaluation Of BS Company Based On EVA

In recent years,with the acceleration of China's industrialization construction,the demand for industrial products has gradually changed from quantity to quality.How to accurately measure the value and operating status of enterprises has become the focus of financial information stakeholders.The use of EVA index to evaluate the financial performance of enterprises,considering the impact of the cost of equity capital and other factors on the enterprise value,more true reflection of enterprise value,make up for the shortcomings of traditional financial performance evaluation indicators.As a professional equipment manufacturing company listed on the small and medium-sized board,BS company raised a lot of funds through listing,but it has not been effectively used,which is not conducive to the business development of the company.Therefore,it is necessary to introduce EVA index into the financial performance evaluation system of BS company,accurately diagnose the company's financial situation,and enhance the core competitiveness.Taking BS Company as the research object,this paper evaluates the financial performance of BS Company by applying the theories of residual income,economic profit,principal-agent,MM and other research methods such as literature research,quantitative analysis and comparative analysis.This paper consists of five parts.First,the research status of EVA theory,financial performance evaluation and EVA-based financial performance evaluation at home and abroad are summarized.Secondly,it introduces the concept and theoretical basis of financial performance evaluation and EVA.Thirdly,the financial data of BS Company from 2016 to 2020 are selected to analyze the current status of traditional financial performance from four aspects of profitability,operation,debt repayment and growth,revealing the shortcomings of traditional financial performance evaluation indicators,such as easy manipulation of accounting profit,incomplete evaluation indicators and failure to consider the cost of equity capital.Fourthly,on the basis of elaborating the advantages of EVA-based financial performance evaluation of BS Company,this paper calculates the EVA index of BS Company from 2016 to 2020,and compares the calculated results with ROE,net profit and earnings per share.It is found that the financial performance of BS company has the problems of high equity capital proportion,high operating cost and low capital utilization efficiency.Finally,it puts forward some improvement suggestions,such as adjusting the proportion of equity capital and debt capital,strengthening operating cost control and improving capital use efficiency,so as to improve the financial performance of BS Company.