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Article: Economic Value Added (EVA): A New Flexible Tool for Measuring Corporate Performance
- Article from:
- Global Journal of Flexible Systems Management
- Article date:
- January 1, 2001
- Author:
CopyrightCopyright Global Institute of Flexible Systems Management (GIFT) Jan-Mar 2001. Provided by ProQuest LLC. (Hide copyright information)
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Abstract
With increased competition and greater awareness among investors, new and innovative ways of measuring corporate performance are being developed. New tools/techniques provide flexibility to managers in their functions, be it in terms of operational aspects or evaluation parameters. Economic Value Added (EVA) is one such innovation. Besides the measures like Return on Equity (ROE), Return on Net Worth (RONW), Return on Capital Employed (ROCE) and Earnings per Share (EPS), EVA is a new measure available to the corporate managers.
This paper describes and compares the EVA with other measures. Apart from this, taking the real financial data of a company, the paper shows how EVA ...