Tuesday, May 6, 2014

EVA : Economic value added - Auditors should know this as well

Economic value added ("EVA") statement is commonly seen as another measurement of the financial performance of a company. EVA statement is usually seen in the annual report/ reporting of conglomerate.

Economic value added (EVA) is an internal management performance measure that compares net operating profit to total cost of capital. Stern Stewart & Co. is credited with devising this trademarked concept.

(Extracted from www.investinganswers.com)

Please research more details on the nature of EVA as it is useful to know and audit work may arise from this area.

You may visit the following page for more information:

http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/economic-value-added-eva-2925

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