How many evaluation systems are there for enterprise profitability? What is the difference? What are their advantages and disadvantages?

Overview of enterprise performance evaluation system The enterprise performance evaluation system refers to an organic whole formed by a series of evaluation systems, evaluation index systems, evaluation methods, evaluation standards and evaluation institutions related to performance evaluation. The enterprise performance evaluation system consists of three subsystems: performance evaluation system, performance evaluation organization system and performance evaluation index system. The scientificity, practicability and operability of enterprise performance evaluation system are the prerequisites for achieving objective and fair evaluation of enterprise performance. The design of enterprise performance evaluation system follows the basic principles of "comprehensive content, scientific method, standardized system, objectivity and fairness, simple operation and wide adaptability". The evaluation system itself also needs to be constantly developed and improved with the constant changes in the economic environment. The content of enterprise performance evaluation depends on the type of enterprise management, and the content of different types of enterprise performance evaluation is different. The evaluation contents of industrial and commercial enterprises and financial enterprises are different. In industrial and commercial enterprises, the evaluation emphasis of competitive enterprises and non-competitive enterprises is different. Solve the puzzle of enterprise performance evaluation system design. The enterprise performance evaluation system currently being tried out in China is designed for industrial and commercial competitive enterprises. According to the characteristics of industrial and commercial competitive enterprises, the content of performance evaluation includes four aspects: financial efficiency, asset operation, solvency and development ability. Financial benefits mainly reflect the return on investment and profitability of enterprises; The asset operation status mainly reflects the enterprise's asset turnover and operation ability; The debt repayment status mainly reflects the asset-liability ratio and debt repayment ability of enterprises; Development ability mainly reflects the growth and long-term development potential of enterprises. These four parts are interrelated, complement each other, and each has its own emphasis, which reveals the current actual operation and management of the evaluated enterprise from different angles. Through the evaluation of the above four aspects, we can draw the conclusion of performance evaluation that reflects the whole picture of the enterprise. At present, in addition to the performance evaluation system of state-owned capital, some enterprises have actively adopted the evaluation methods such as "Dupont Financial Analysis System", "Balanced Scorecard" and "Economic Value Added" (EVA) proposed by American scholars and business circles. Although these performance evaluation methods have their own advantages, each method still has some defects in enterprise performance evaluation. Combined with the present situation and characteristics of Chinese enterprises, we should adopt the principle of multi-factor comprehensive evaluation and the principle of combining quantitative analysis with qualitative evaluation to establish a multi-dimensional dynamic enterprise performance evaluation system based on performance budget management. First, the defects of traditional enterprise performance evaluation methods 1, DuPont financial analysis system DuPont financial analysis system is a factor analysis method, which was popular all over the world once it came out, and was adopted by many large enterprises such as General Motors and Panasonic, and became a widely used enterprise performance evaluation system in the following decades. However, DuPont's analysis system does not go deep into the process of enterprise management in terms of finance, and it cannot comprehensively and dynamically reflect the problems in the process, nor can it be organically combined with the strategic objectives and strategic management means of enterprises. In addition, due to the limitations of the times, DuPont system is an analysis and evaluation system that attaches importance to internal management and ignores external markets. 2. Balanced Scorecard The balanced scorecard is called the most important innovation of management accounting in the 1990s, and it is an alternative index system designed for the defects of DuPont system. It includes financial indicators that show the results of past actions, and reflects the motivation of future financial performance with business indicators such as customer satisfaction, internal operation of enterprises, organizational innovation and learning, so as to supplement the financial indicators and evaluate the performance of enterprises from many aspects. The balanced scorecard is first a strategic management system, and then a performance evaluation system. Performance evaluation is based on strategic management and daily management. Therefore, if the management level of the enterprise does not meet this requirement, this method cannot be used. In addition, its evaluation system does not pay enough attention to stakeholders other than shareholders, employees and customers. 3. State-owned capital performance evaluation system China's "State-owned capital performance evaluation rules" and "enterprise capital performance evaluation operating procedures" are a relatively complete set of state-owned capital performance evaluation systems. For the first time, non-financial indicators such as the overall quality of enterprises, internal control, public image and future potential are included in the performance evaluation system, and the performance evaluation index system of industrial and commercial competitive enterprises is divided into three levels, and the comprehensive scoring method is adopted for the indicators. The introduction and implementation of this system marks the initial establishment of a new enterprise performance evaluation system and evaluation system in China. However, the system does not include the performance evaluation of stakeholders other than employees and customers. 4.EVA economic added value EVA overcomes the above defects of traditional indicators and accurately reflects the value created by enterprises for shareholders in a certain period of time. The purpose of the whole EVA system is to determine the basis for issuing incentive compensation with the value driving force and capital cost as the center, and to realize good communication within the enterprise and with investors; The application of EVA not only conforms to the long-term development interests of enterprises, but also meets the requirements of the era of knowledge economy. However, in essence, EVA is still a comprehensive evaluation index of financial performance. The performance evaluation system based on EVA has the following shortcomings: (1) can only reflect the results of the total factor production process, which is too comprehensive to guide the specific management behavior; (2) Paying attention to financial strategy and neglecting the evaluation of strategic process will easily weaken the ability of enterprises to create long-term wealth; (3) the pertinence is not strong, and it is impossible to point out the specific non-financial performance drivers and the direction of solving problems; (4) The use of intangible assets and intellectual capital and their performance evaluation are not fully considered. Second, the connotation of performance budget management Performance budget management is an important part of enterprise comprehensive budget management. Enterprise performance budget is a budget system with goal as the guide, project cost as the measure and performance evaluation as the core. It is a budget system that closely combines the increase of resource allocation with the improvement of performance. The purpose of performance management is to achieve results and efficiency. In performance budget management, enterprises, as a member of the whole social and economic operation system, should not only achieve economic benefits, but also achieve social benefits in order to complete their social mission. Thirdly, the design of enterprise dynamic performance evaluation index system based on performance budget management. By designing a multi-dimensional dynamic enterprise performance evaluation index system, the preparation and monitoring of enterprise budget are based on dynamic multi-perspective analysis, which makes up for the deficiency of traditional financial evaluation methods for enterprise performance evaluation for a long time, that is, the enterprise performance evaluation system is regarded as a reflection of the past historical operating conditions of enterprises. We will expand the static management behavior that pays attention to afterwards to adapt to the change of business environment, combine financial indicators with non-financial indicators, and combine quantitative indicators with qualitative indicators to promote the value-added of enterprises and improve the preservation and appreciation of state-owned capital, and establish a multi-perspective dynamic performance evaluation system for social and ecological benefits except financial indicators. (1) Indicators for evaluating economic benefits Enterprise performance is multifaceted, and indicators for evaluating economic benefits can be financial or non-financial. Economic benefit evaluation index is the most widely used index, because the long-term goal of an enterprise is almost always pure economic benefit, and the economic benefit evaluation index is directly connected with the financial goal of the enterprise, which has the function of comprehensively reflecting the performance of the enterprise. Under the management of enterprise performance budget, in order to effectively reflect the comprehensive performance of the enterprise, so that all stakeholders can evaluate the business performance of the enterprise from their own perspectives, the economic benefit indicators can reflect the business performance from both financial and non-financial aspects. 1. Financial indicators: including profitability, solvency, asset management, growth, equity expansion and the unique position of the main business, etc. Among them, the first four items are the same as the current enterprise performance evaluation system in China, and the last two items are considered according to the characteristics of listed enterprises. 2. Non-financial indicators: mainly reflect the business performance of the enterprise from the aspects of innovation ability, R&D expense rate, new product sales rate, new product development rate, market share, customer satisfaction and contract delivery rate. (II) Social benefit evaluation indicators The social benefits of the company are mainly investigated from four aspects: economic responsibility, legal responsibility, moral responsibility and other responsibilities, such as whether the production and operation are legal, whether it causes serious pollution, whether it treats ethnic minority employees correctly, whether it properly handles social relations, and whether it correctly handles customer problems. This can not only make the company know the position of its social performance in the same industry, but also know which stakeholders the company resources should be allocated to, and can also promote the communication between the company managers and stakeholders. Under the performance budget management, enterprises and internal departments should not only aim at completing or exceeding the economic budget targets, but also evaluate the performance of enterprises from the perspective of whether they fulfill their social responsibilities conscientiously. Indicators for evaluating corporate social responsibility, such as the occurrence rate of major accidents, safety productivity, leakage rate, employee salary and expense payment rate, social accumulation rate, pollutant discharge compliance rate, environmental protection status, etc., reflect comprehensive performance. Total cost management and control is of great significance to enhance enterprise value. It is not only the fundamental way for enterprises to increase profits, but also the main guarantee for enterprises to resist internal and external pressures and survive, and it is also the foundation for enterprise development.