We’ll begin with a box, and the plural is boxes;
but the plural of ox became oxen not oxes.
One fowl is a goose, but two are called geese,
yet the plural of moose should never be meese.
You may find a lone mouse or a nest full of mice;
yet the plural of house is houses, not hice.
If the […]

In my earlier articles, I have noted many rationale for M&A exercise.
Recently reported in The Star the following:
“ Daikin Industries Ltd of Japan made an offer yesterday to acquire 100% of OYL Industries Bhd for RM5.73 a share or a total of about RM7.6bil cash. This is believed to be the largest foreign takeover of a Malaysian […]

Further to my article on  some of the reasons for companies to privatize, recently in The Star , it was reported that infrastructure group MMC Corp Bhd is taking private Malakoff Bhd, in a deal that values Malaysia’s biggest independent power producer at Rm9.3 billion, making it Malaysia’s biggest-ever corporate takeover.

Let’s look at the following scenario […]

Before we even talk about if there is any pitfalls of EVA, we should really note that EVA has many distinctive advantages:

In my earlier article, we have compared EVA with earnings per share and return on investment/assets and found that both the traditional ratios do not reflect the true cost of capital- there is no […]

To answer the question of how to improve EVA, let’s re-look at its formula:
EVA=Net Operating profits after tax – (Capital Employed x Cost of capital)

Generally, we can improve EVA by reviewing the components or drivers of EVA:

NOPAT IMPROVEMENT:

NOPAT is involves with revenue and profit growth. So to improve EVA we need to try to […]