In this article we will discuss about the Bennett Stewart explanation of Economic Value Added (EVA). Economic Value Added is the financial performance measure that comes closer than any other to capturing the true economic profit of an enterprise. EVA also is the performance measure most directly linked to the creation of shareholder wealth over time. Stern Stewart & Co. [...]
In this essay we will discuss about role of Economic Value Added (EVA) in the cash flow generated by a business. After reading this essay you will learn about:- 1. Meaning of Economic Value Added 2. Importance of Economic Value Added (EVA) 3. Measurement 4. Market Return. Essay # 1. Meaning of Economic Value Added (EVA): Earning profit is not [...]
In this article we will discuss about:- 1. Meaning of Economic Value Added 2. Suggestions to Improve EVA 3. Steps in Implementing EVA 4. Superiority of EVA 5. Drawbacks of EVA. Meaning of Economic Value Added: The goal of financial management is to maximize the shareholder's value. The shareholder's wealth is measured by the returns they receive on their investment. [...]