Answer
Economic Value Added (EVA) is a financial performance measure that assesses a company's profitability by calculating the difference between its net operating profit after taxes (NOPAT) and the cost of capital used to finance its operations. It's a measure of value creation that indicates whether a company is generating returns above and beyond the minimum required by its investors. In essence, EVA quantifies how much value a company adds or subtracts from its invested capital.
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