economic value added

economic value added
economic value added ( EVA®)
Since EVA is a registered mark, the phrase shareholder value added, or SVA, is often used instead. American Banker Glossary
————
( EVA)
A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line, if investors would usually require 14% on capital invested for this level of risk, the division destroyed shareholder value by the EVA metric. This Stern-Stewart has a trade mark on this term. Bloomberg Financial Dictionary

* * *

economic value added ˌeconomic ˌvalue ˈadded abbreviation EVA noun [uncountable] ACCOUNTING ECONOMICS COMMERCE
the difference between the amount of profit a company makes from capital it invests and the amount it pays out to get that capital:

• Economic value added indicates whether managers are creating value for shareholders or destroying it.

* * *

economic value added UK US noun [U] (ABBREVIATION EVA) ACCOUNTING, FINANCE
the amount by which the profit made by a company is bigger than the capital it has invested to make that profit. Economic value added is considered to be a way of measuring how successful a company is.

Financial and business terms. 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Economic Value Added — Economic Added Value Treiberbaum Der Economic Value Added (EVA) oder Geschäftswertbeitrag ist eine Messgröße aus der Finanzwirtschaft, um die Vorteilhaftigkeit einer Investition zu berechnen. EVA stellt einen Residualgewinn dar und ergibt eine… …   Deutsch Wikipedia

  • economic value added — See economic profit. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Economic value added — In corporate finance, Economic Value Added or EVA® is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital. GAAP is estimated to ignore US$300… …   Wikipedia

  • Economic value added — Valeur économique ajoutée Pour les articles homonymes, voir EVA. La valeur économique ajoutée (Economic Value Added, EVA) est l excédent de résultat du à l activité d une organisation par rapport au coût du financement des apporteurs de capitaux …   Wikipédia en Français

  • Economic Value Added - EVA — A measure of a company s financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as economic profit .) The formula for… …   Investment dictionary

  • Economic Value Added — EVA A performance measure used to evaluate a company s economic profit (i.e., the value added to a company by its activities in a given time period). It is the calculation of a company s net operating profit after taxes, minus a cost of capital… …   Accounting dictionary

  • Economic Value Added — EVA A performance measure used to evaluate a company s economic profit (i. e. , the value added to a company by its activities in a given time period). It is the calculation of a company s net operating profit after taxes, minus a cost of capital …   Big dictionary of business and management

  • economic value added — /ˌi:kənɒmɪk ˌvælju: ædɪd/ noun the difference between a company’s profit and the cost of its capital. A company does not have simply to make a profit from its business – it has to make enough profit to cover the cost of its capital, including… …   Dictionary of banking and finance

  • Value added — refers to the additional value of a commodity over the cost of commodities used to produce it from the previous stage of production. An example is the price of gasoline at the pump over the price of the oil in it. In national accounts used in… …   Wikipedia

  • value added — added value The value added to goods or services by a step in the chain of original purchase, manufacture or other enhancement, and retail. See value added statement; value chain See also Economic Value Added …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”