The Structuring Research of Du Pont Analysis System Based on EVA

One of important defects of the traditional Du Pont analysis system which takes return on equity as the core is that it can´t reflect the process of creating value in which shareholders invest their capital. The article structures a new Du Pont analysis system basing on Economic Value Added of Equity (EVAOE) by analyzing the problems and shortcomings in the traditional Du Pont analysis system. The improved new system is universal, it protects the owner´s rights, it can not only reflect truly the ability of capital invested by shareholders to create value, but also it can analyze the changes of the company´s performance on Economic Value Added (EVA) effectively and provide new ways and ideas for the company performance and financial position.