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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 EVA [...] To answer the question of how to improve EVA, let’s re-look at its formula: 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 improve [...] 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 hinge [...] Recently, the KPMG’s Corporate Shareholder Value Award 2008 ceremony was officiated by Securities Commission chairman Tan Sri Zarinah Anwar. Details: KPMG noted that the average economic profit over invested capital (EP/IC) among the top 100 listed companies here rose to 15.46 per cent last year, compared with 14.35 per cent in 2007 and 13.52 per cent in 2006.((KPMG [...] 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 third [...] |
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach. |
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