Economic Value Added EVA - Revision history

DavidWashington: minor updates

2012-08-03T09:31:59Z

minor updates

Dienstl-Arnegger at 13:46, 11 April 2012

2012-04-11T13:46:23Z

61.191.191.192: FIdOhyNwtDima

2012-01-07T07:22:32Z

FIdOhyNwtDima

86.28.210.250: OUNhtsKzyKZD

2011-06-28T01:11:42Z

OUNhtsKzyKZD

Thomka at 21:11, 27 January 2011

2011-01-27T21:11:17Z

Thomka at 20:43, 10 January 2011

2011-01-10T20:43:35Z

Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */

2010-12-13T13:27:10Z

IGC-DEFINITION (abbreviated)

Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */

2010-12-13T13:25:59Z

IGC-DEFINITION (abbreviated)

Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */

2010-12-13T13:24:32Z

IGC-DEFINITION (abbreviated)

Markus Berger-Vogel: /* IGC-DEFINITION (abbreviated) */

2010-12-13T13:22:53Z

IGC-DEFINITION (abbreviated)

← Older revision		Revision as of 09:31, 3 August 2012
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	[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]		[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]
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← Older revision		Revision as of 13:46, 11 April 2012
Line 1:		Line 1:
−	~~Always~~ the ~~best coentnt~~ from ~~these prodigious writers~~.	+	== IGC-DEFINITION (abbreviated) ==
		+	'''Economic Value Added EVA / [[:de:Economic Valued Added (EVA) \|Economic Value Added EVA]]'''<br>
		+	Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
		+	EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI\|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.
		+	Value is created when the difference between realised profitability and the market-oriented cost of capital is positive.
		+	The calculation of capital costs is the same as with shareholder value using the WACC-formula ([[Weighted Average Cost of Capital WACC\|WACC = Weighted Average Cost of Capital]]) as a market-orientated interest rate.
		+	The relevant profit figure is profit after taxes but before deduction of interest. To take investments in the future of the company into consideration, expense for research & development, marketing and product introduction is added to the above profit figure and then written off over several years. The resulting depreciation is then deducted from the profit figure. This leads to a higher profit volume, which in turn leads to a higher tax volume.
		+	The following formula is the result:
		+
		+	[[Image:EVAe.png\|x50px]]
		+
		+	EVA can thus also be described as the surplus profit over the WACC demanded by the capital market.
		+
		+	The net operating assets are also corrected, starting from the balance sheet total. First, the liabilities for which no interest is paid (mainly accounts payable) are deducted. The resulting figure is the capital employed. Then the value of the not yet depreciated expense for research & development, marketing and product introduction is added to the working capital.
		+
		+	from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]
		+
		+	== Source ==
		+
		+	[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]

← Older revision		Revision as of 07:22, 7 January 2012
Line 1:		Line 1:
−	~~I wnaetd to spend a minute to thank you for this~~.	+	Always the best coentnt from these prodigious writers.

← Older revision		Revision as of 01:11, 28 June 2011
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−	~~== IGC-DEFINITION (abbreviated) ==~~	+	I wnaetd to spend a minute to thank you for this.
−	~~'''Economic Value Added EVA / [[:de:Economic Value Added (EVA) \|Economic Value Added (EVA)]]'''<br>~~
−	Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
−	EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI\|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.
−	~~Value is created when the difference between realised profitability and the market-oriented cost of capital is positive.~~
−	The calculation of capital costs is the same as with shareholder value using the WACC-formula ([[Weighted Average Cost of Capital WACC\|WACC = Weighted Average Cost of Capital]]) as a market-orientated interest rate.
−	The relevant profit figure is profit after taxes but before deduction of interest. To take investments in the future of the company into consideration, expense for research & development, marketing and product introduction is added to the above profit figure and then written off over several years. The resulting depreciation is then deducted from the profit figure. This leads to a ~~higher profit volume, which in turn leads~~ to ~~a higher tax volume.~~
−	~~The following formula is the result:~~
−
−	~~[[Image:EVAe.png\|x50px]]~~
−
−	~~EVA can thus also be described as the surplus profit over the WACC demanded by the capital market.~~
−
−	The net operating assets are also corrected, starting from the balance sheet total. First, the liabilities for which no interest is paid (mainly accounts payable) are deducted. The resulting figure is the capital employed. Then the value of the not yet depreciated expense for ~~research & development, marketing and product introduction is added to the working capital.~~
−
−	~~from: [http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)]~~
−
−	~~== Source ==~~
−
−	~~[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4~~. ~~Auflage, Schäffer-Poeschel, Stuttgart, 2010]~~
−
−	~~[[Category:Value-based management]]~~

@@ Line 1: / Line 1: @@
 == IGC-DEFINITION (abbreviated) ==
-'''Economic Value Added EVA / [[:de:Economic Valued Added (EVA) |Economic Value Added EVA]]'''<br>
+'''Economic Value Added EVA / [[:de:Economic Value Added (EVA) |Economic Value Added (EVA)]]'''<br>
 Economic Value Added is a profitability figure that shows the shareholders, if the management was able to create value during a given period. Primarily, the EVA-concept should lead to higher profitability for the shareholders, but it is also a performance measure for managers.
 EVA is intended to overcome the short-term scope of profitability figures like [[Return on Investment ROI|ROI]], usually measured on a yearly basis. Managers who invest in the future of the company get lower ROI-percentages in the short run because they have more depreciation and more fixed costs to carry.

← Older revision		Revision as of 20:43, 10 January 2011
Line 19:		Line 19:

	[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]		[http://www.igc-controlling.org/EN/_publikationen/publikationen.php IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.), 4. Auflage, Schäffer-Poeschel, Stuttgart, 2010]
		+
		+	[[Category:Value-based management]]