- Table of Contents
- Economic Value Added (EVA) for Small
Business
What is Economic Value Added (EVA)?
What is Economic Value Added (EVA)?
(Cont.)
EVA Basic Premise
Why is EVA also useful for small
companies (even with less than 100 employees) ?
Why is EVA also useful for small
companies (even with less than 100 employees) ? (Cont.)
What is Needed to Calculate Company's
Economic Value Added (EVA)?
Illustration: Common Income Statement
Illustration: Common Balance Sheet
EVA Calculation Steps
Step 1: Calculate Net Operating
Profit After Taxes (NOPAT)
Step 1: Calculate Net Operating
Profit After Taxes (NOPAT) (Cont.)
Step 2: Identify Company's Capital
(C)
Step 3: Determine Capital Cost
Rate (CCR)
Step 4: Calculate Company's EVAThe
Complete Procedure: Calculate EVA in the Internal Reporting
EVA Implementation by a Small Company
How can the Management in a Small
Company Improve EVA?
Conclusion
Conclusion (Cont.)
Questions ?
Author:Narcyz Roztocki and Esa Mäkeläinen
Email: Esa.Makelainen@iki.fi
Home Page: http://www.evanomics.com
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