Difference between revisions of "Economic Value Added EVA"
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== IGC-DEFINITION (abbreviated) == | == IGC-DEFINITION (abbreviated) == | ||
| − | '''Economic Value Added EVA / [[:de:Economic | + | '''Economic Value Added EVA / [[:de:Economic Valued Added (EVA) |Economic Value Added EVA]]'''<br> |
Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers. | Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers. | ||
EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry. | EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry. | ||
| Line 19: | Line 19: | ||
[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010] | [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010] | ||
| + | |||
| + | == 10 Ways to Love Where You Live == | ||
| + | |||
| + | Community is not just for extroverts.For thousands of years, our ancestors lived in barrios, hamlets, neighborhoods, and villages. Yet in the time since our parents and grandparents were young, privacy has become so valued that many neighborhoods are not much more than houses in proximity. | ||
| + | |||
| + | [[http://goodvillenews.com/10-Ways-to-Love-Where-You-Live-FT4yRy.html 10 Ways to Love Where You Live]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == The Business 9 Women Kept A Secret For Three Decades == | ||
| + | |||
| + | Somewhere in West Tennessee, not far from Graceland, nine women -- or "The 9 Nanas," as they prefer to be called -- gather in the darkness of night. At 4am they begin their daily routine -- a ritual that no one, not even their husbands, knew about for 30 years. They have one mission and one mission only: to create happiness. And it all begins with baked goods.One of us starts sifting the flour and another washing the eggs, | ||
| + | |||
| + | [[http://goodvillenews.com/The-Business-9-Women-Kept-A-Secret-For-Three-Decades-hOoGN8.html The Business 9 Women Kept A Secret For Three Decades]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == The Second Glance == | ||
| + | |||
| + | Have you ever cringed at the sight of a human being who is physically disfigured? David Roche, who was born with a facial disfigurement, spent years trying to hide from himself. At middle age, he discovered his inner beauty, his spirit and his strength, and he has dedicated his life to helping all people find the inner beauty within themselves and in others. | ||
| + | |||
| + | [[http://goodvillenews.com/The-Second-Glance-FDzaku.html The Second Glance]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == 9 Essential Skills Kids Should Learn == | ||
| + | |||
| + | Kids in todays school system are not being prepared well for tomorrows world.As someone who went from the corporate world and then the government world to the ever-changing online world, I know how the world of yesterday is rapidly becoming irrelevant. | ||
| + | |||
| + | [[http://goodvillenews.com/9-Essential-Skills-Kids-Should-Learn-k87qsp.html 9 Essential Skills Kids Should Learn]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
| + | |||
| + | == New Toilet System Transform Waste into Electricity == | ||
| + | |||
| + | Scientists from Nanyang Technological University (NTU) have invented a new toilet system that will turn human waste into electricity and fertilisers and also reduce the amount of water needed for flushing by up to 90 per cent compared to current toilet systems in Singapore. | ||
| + | |||
| + | [[http://goodvillenews.com/New-Toilet-System-Transform-Waste-into-Electricity-zvQBzk.html New Toilet System Transform Waste into Electricity]] | ||
| + | |||
| + | [[http://goodvillenews.com/wk.html GoodvilleNews.com - good, positive news, inspirational stories, articles]] | ||
Latest revision as of 10:31, 3 August 2012
Contents
IGC-DEFINITION (abbreviated)
Economic Value Added EVA / Economic Value Added EVA
Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
EVA is intended to overcome the short-term scope of profitability figures like ROI, usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.
Value is created when the difference between realised profitability and the market-oriented cost of capital is positive.
The calculation of capital costs is the same as with shareholder value using the WACC-formula (WACC = Weighted Average Cost of Capital) as a market-orientated interest rate.
The relevant profit figure is profit after taxes but before deduction of interest. To take investments in the future of the company into consideration, expense for research & development, marketing and product introduction is added to the above profit figure and then written off over several years. The resulting depreciation is then deducted from the profit figure. This leads to a higher profit volume, which in turn leads to a higher tax volume.
The following formula is the result:
EVA can thus also be described as the surplus profit over the WACC demanded by the capital market.
The net operating assets are also corrected, starting from the balance sheet total. First, the liabilities for which no interest is paid (mainly accounts payable) are deducted. The resulting figure is the capital employed. Then the value of the not yet depreciated expense for research & development, marketing and product introduction is added to the working capital.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
Source
10 Ways to Love Where You Live
Community is not just for extroverts.For thousands of years, our ancestors lived in barrios, hamlets, neighborhoods, and villages. Yet in the time since our parents and grandparents were young, privacy has become so valued that many neighborhoods are not much more than houses in proximity.
[10 Ways to Love Where You Live]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
The Business 9 Women Kept A Secret For Three Decades
Somewhere in West Tennessee, not far from Graceland, nine women -- or "The 9 Nanas," as they prefer to be called -- gather in the darkness of night. At 4am they begin their daily routine -- a ritual that no one, not even their husbands, knew about for 30 years. They have one mission and one mission only: to create happiness. And it all begins with baked goods.One of us starts sifting the flour and another washing the eggs,
[The Business 9 Women Kept A Secret For Three Decades]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
The Second Glance
Have you ever cringed at the sight of a human being who is physically disfigured? David Roche, who was born with a facial disfigurement, spent years trying to hide from himself. At middle age, he discovered his inner beauty, his spirit and his strength, and he has dedicated his life to helping all people find the inner beauty within themselves and in others.
[The Second Glance]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
9 Essential Skills Kids Should Learn
Kids in todays school system are not being prepared well for tomorrows world.As someone who went from the corporate world and then the government world to the ever-changing online world, I know how the world of yesterday is rapidly becoming irrelevant.
[9 Essential Skills Kids Should Learn]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
New Toilet System Transform Waste into Electricity
Scientists from Nanyang Technological University (NTU) have invented a new toilet system that will turn human waste into electricity and fertilisers and also reduce the amount of water needed for flushing by up to 90 per cent compared to current toilet systems in Singapore.
[New Toilet System Transform Waste into Electricity]
[GoodvilleNews.com - good, positive news, inspirational stories, articles]
