In the KPMG Shareholder Value Award 2006, British American Tobacco (M) Bhd (BAT) has, for the fifth consecutive year, emerged as overall winner. Information and communications technology (ICT) companies JobStreet Corp Bhd and Uchi Technology Bhd grabbed the first and second runner-up spots respectively.
Details:
·         ICT industry was the most highly represented with over a […]

The capital repayment was reported in the NST,(6/4/06)
Mobile operator DiGi.Com Bhd plans a second capital repayment of 60 sen a share (RM450mln in total) to entitled shareholders. The proposal, pending approval, is expected to be completed by the fourth quarter 2006. When the exercise is completed, DiGi share capital will be reduced to RM75mln, significantly […]

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 […]

As part of the role to assist senior management, the financial executive needs to find the best metric to measure the financial performance of his organization.
Normally, many companies are still using Earnings per share, Returns on Assets as the key performance metric.
 
Introduction:

Economic value-added (EVA) has increasingly gain acceptance amongst many top-notched organization. Those who used […]