Economic Value Added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. It can also be described as the net profit less the equity cost. EVA is an internal management performance measure that compares net operating profit to total cost of capital.
Follow up to the first part of our Business Strategies and Frameworks compilation, part 2 offers you...
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