Research On Financial Performance Evaluation Of Company A Based On EVA

At present,as the second largest economy after the United States,China not only has a complete industrial system,as early as 2011,China’s total industrial output value has surpassed the United States to become the world’s largest industrial country.However,under the huge industrial system,with the increasing number and scale of enterprises,the energy consumed by industrial production is also huge.In 2021,the state issued the dual control policy of energy consumption,and many regions began to issue power rationing notices,which also greatly affected many enterprises.On the one hand,the total amount of traditional energy is limited and serious environmental problems are prominent.On the other hand,the development and utilization of new energy is insufficient.The arduous and urgent task is to implement on the new energy enterprises.The new energy enterprises also need a set of management mode that can adapt to the current economic environment,and indirectly contribute to alleviating the current tension of energy consumption while seeking their own development and sustainable development.However,at present,some new energy enterprises use traditional financial performance evaluation indicators,which has produced a large number of short-term business behavior,making the development of enterprises in trouble.Compared with the traditional financial performance evaluation indicators,EVA takes the cost of capital as the key element of performance evaluation,and fully considers the advantages of investors’ return on capital and maximization of shareholders’ wealth.Applying EVA to new energy enterprises can improve the operating conditions of new energy enterprises to a certain extent.Company A is a leading enterprise in the photovoltaic industry in China.As a new energy enterprise,introducing EVA into Company A has reference and reference significance for other new energy enterprises.Therefore,taking Company A as an example,this article first introduces its organizational structure and industry background;Based on the actual situation of Company A,the data from 2017-2021 were selected,and the original performance evaluation system and methods of Company A were analyzed to identify the hidden problems in its current financial performance evaluation system;Then,it analyzes the feasibility and necessity of introducing EVA into Company A,and combines the enterprise characteristics of Company A to introduce EVA into its financial performance system,make corresponding accounting adjustments,construct the financial performance system of EVA,calculate the EVA value,and compare it with the current financial performance evaluation indicators of Company A to obtain a comprehensive evaluation result;Finally,the comprehensive results will be analyzed to identify the shortcomings in the operation and management of Company A,and targeted improvement suggestions will be proposed,hoping to improve the comprehensive competitiveness of Company.AIntroducing EVA into company A,on the one hand,improves the financial performance evaluation system for company a and obtains the real business performance of the company,so as to present more reliable and true information for shareholders and regulators;On the other hand,it also conducts localization research for economic value-added,which is also a test of whether EVA can still play a role in enterprise performance evaluation at this stage.This is also the main reason why this paper introduces EVA into company A.