What Is Economic Value-Added (EVA) And The Comparision To Earnings Per Share Or Return On Assets
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 [...]
October 24, 2009
Tags: Economic Value Added Definition, EVA, What is Posted in: EVA 
One Comment
How To Improve Economic Valued Added(EVA) KPI?
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 [...]
October 24, 2009
Tags: Economic Valued Added, EVA, How to Posted in: EVA One Comment
Advantages and Disadvantages of Using Economic Value-Added (EVA) As Performance Indicator or KPI
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 [...]
October 24, 2009
Tags: EVA, KPI Posted in: EVA No Comments
2008 Corporate Shareholder Value Awards
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 [...]
August 25, 2009
Tags: EVA Posted in: EVA No Comments
BAT Again Emerges As KPMG Shareholder Value Award overall winner
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 [...]
October 3, 2007
Tags: Economic Valued Added, EVA Posted in: EVA No Comments
