Author(s)

Yaqi Yuan

Corresponding Author

Yaqi Yuan

ABSTRACT

In recent years, the traditional auto industry has been sluggish and financial performance is worrying. The development status and prospects of the auto industry have received widespread attention from the society. As a long-established and medium-sized company, Huayu Automobile can represent the financial performance of traditional auto companies to a certain extent, so this paper evaluates the company's financial performance based on economic value added. The study found that the economic value added of Huayu Automobile is generally in a stable growth state, which is mainly due to the good control of Huayu Automobile's operating costs. However, Huayu Automobile still has a financial disadvantage, its operating income is too stable and its debt capital ratio is growing too fast. Therefore, this article further proposes relevant suggestions for improving the company's financial performance in terms of capital structure and operating income.

KEYWORDS

Automobile Industry, Financial Performance, EVA