Research On Financial Performance Evaluation Of Zijin Mining Based On EV

In an environment of rapid economic development,business owners are gradually changing their profit objectives and choosing to focus more on long-term interests.Traditional financial indicators are no longer sufficient for assessing enterprise performance,and the EVA financial performance evaluation method has gradually gained the attention of major corporations.What EVA considers is estimating the growth of enterprise value based on economic profit,which can be applied to management and enterprise employee performance evaluations,as well as decision-making analysis of enterprise business activities.EVA is not only a measurement method;it may also be combined with the enterprise’s own management philosophy and corporate culture to clarify the performance evaluation standards,enabling for the most accurate and appropriate evaluation and providing the basis for enterprise managers’ decision-making.The EVA capital cost constraint system can prevent the enterprise from blindly pursuing the scale expansion,and finally turn to the scale development mode,resulting in a more reasonable capital structure.To summarize,the EVA assessment system is beneficial to Zijin Mining’s sustainable development and risk management.Based on the current situation of Zijin Mining,this paper conducted a systematic analysis on the possibility that traditional financial performance evaluation analysis methods could not meet the current development needs of enterprise managers.From multiple aspects,it was concluded that it was very necessary for Zijin Mining to introduce EVA financial performance evaluation method into financial performance evaluation.From the perspective of value management,this paper selects the relevant financial data of Zijin Mining from 2017 to 2021,makes targeted adjustments to relevant accounting items,calculates the EVA value on this basis,and compares and analyzes the issues that arise when EVA evaluation results are compared to traditional performance evaluation results,such as insufficient capital utilization efficiency and unclear existing incentive policies.Finally,based on the existing problems in the financial performance of Zijin Mining,two suggestions for improvement are put forward: improve the internal management system of Zijin Mining,Enhance the operating efficiency of assets,including enhancing the management of fixed assets and reducing noncash operation costs.The implementation of these measures will play a constructive role in improving Zijin Mining’s financial performance and will give Zijin Mining’s investors and managers a practical meaning for decision analysis to promote the long-term development of the company.