The summary of EVA theory

• EVA is a method to measure a company´s true profitability and steer the company correctly from the viewpoint of shareholders
• EVA helps the operating people to see how they can influence the true profitability (especially if EVA is breaken down into parts than can be influenced)
• Clarifies considerably the consept of profitability (the former operating profit/capital (ROI %) -observation is turned into EVA (FIM, $, £) -observation)
• EVA improves profitability usually through the improved capital turnover
  • Companies have usually done a lot in cutting costs but there is still much to do in improving the use of capital
• EVA is at its best integrated in incentive systems
• More information in my study and in other presentations