Research On Financial Performance Evaluation Of HR Pharmaceutical Company Based On EVA

The sudden outbreak of the new coronavirus has led to many investors focusing on the pharmaceutical manufacturing industry.The competition among pharmaceutical manufacturing companies has also become more intense this year.One of the reasons is that the normalization of the new coronavirus epidemic has restricted normal medical activities as well as the sales activities of pharmaceutical companies.The second reason is that the promotion of centralized drug procurement in our country has made the competition situation among pharmaceutical companies even more fierce.In this context,how to truly and objectively evaluate the financial performance of pharmaceutical companies becomes crucial.On the one hand,current pharmaceutical companies generally use traditional financial indicators to measure company performance,but this method focuses too much on short-term profits instead of reflecting the actual performance of the company,and due to the long period of research and development of new drugs,pharmaceutical companies need to take long-term benefits into consideration when evaluating their financial performance.On the other,the characteristics of the pharmaceutical manufacturing industry makes it impossible to adopt the same performance evaluation system as the traditional manufacturing industry does.For example,pharmaceutical manufacturing enterprises often need to carry out high-investment drug research and development reserves to maintain their operations.In order to solve these problems,this essay introduces the EVA evaluation method for our country’s pharmaceutical enterprises,hoping to obtain a more objective enterprise performance evaluation.This essay chooses HR company,a leading pharmaceutical company in our country,as the research object to analyze the necessity and feasibility of EVA introduction according to the general situation,existing financial status and characteristics of HR pharmaceutical companies,combined with the particularity of the pharmaceutical industry.Based on the characteristics of the above analysis,the evaluation index of enterprise financial performance is selected,and the evaluation system of enterprise financial performance based on EVA is established.The weight of each index is determined by the entropy weight method,and the TOPSIS method is adopted to comprehensively evaluate the financial performance of the enterprise.Then the company’s financial data from 2016 to 2020 is taken as the research object to calculate the relative similarity,and to analyze the evaluation results.According to the research,it’s found that,compared with a single net profit index,the performance evaluation system based on EVA can better reflect the business performance of the company,and can identify problems in the company’s development earlier than traditional evaluation methods do,and thus it can adjust the existing deficiencies of the company in time.In view of the financial situation of HR company,suggestions are put forward to increase foreign investment,improve capital utilization rate to accelerate enterprise transformation,attach importance to the research and development of innovative drugs,and establish equity incentives with EVA as the core.