Application Of EVA In Performance Evaluation Of Chenguang Stationery Company

EVA(economic added value)index is the increase of enterprise value based on the economic profit of an enterprise.It can be used not only for modern corporate management,but also can be used to evaluate the business performance of an enterprise.What is more valuable about EVA is its management concept and its ability to evaluate enterprise performance and make reasonable and scientific analysis and evaluation,so as to provide good decision-making basis for enterprise managers and promote long-term sustainable development of enterprises.At present,the performance evaluation system of M&G Stationery mainly focuses on accounting profit,which lacks consideration of capital cost of enterprise owner’s equity and cannot fully and comprehensively reflect the real performance of the enterprise.However,EVA index can reflect the real value created by manufacturing enterprises by introducing the concept of economic capital and adding the cost of owner’s equity capital.This paper discusses the related theories of performance evaluation,EVA related theories,the comparison with traditional performance indicators,the advantages of EVA indicators and the basis for M&G stationery to implement EVA performance evaluation;Taking Chenguang Stationery as an example,the paper constructs the EVA performance evaluation system and calculates the COMPANY’s EVA in 5 years.Compared with the traditional financial index,it proves that EVA index is more advantageous.After analyzing the EVA results,it points out the problems that need to be improved in M&G stationery management,and puts forward solutions to these problems.According to the research and analysis of this paper,Chenguang Stationery and other office stationery enterprises are suitable for using EVA performance evaluation indicators for performance evaluation.The results obtained through EVA analysis can promote the operation and management of enterprises to maintain long-term sustainable development.When domestic enterprises use EVA performance evaluation indicators,on the one hand,they need to take the advantages of EVA,and on the other hand,they also need to transform EVA according to their own operating conditions according to the actual situation of the enterprise,so that EVA can play the greatest effect.