January 2015
Beginner
344 pages
7h 36m
English

The economic value added (EVA) is a method to express the financial performance of an organisation. It expresses the performance of an organisation as its profits minus the cost of financing the organisation’s activities. The idea is that value is created (added) when the profit exceeds the costs (see Figure 29.1). The concept of EVA was introduced by consulting firm Stern Stewart & Co (Stewart, 1990).
The original purpose of EVA was to include two principles in management’s decision-making: (1) the objective of a company is to maximise ...
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