Final paper – evaluation of corporate performance
Economic Value Added (EVA) is a measure used to assess the performance of management in an organization. It takes into account the economic cost of capital, revenue and expenses to calculate the true economic value created by management decisions. EVA calculations are commonly used by investors when evaluating companies for potential investments and can help determine whether or not a company is creating value for its stakeholders. EVA also provides organizations with valuable insights into how their decision making is impacting profitability and overall performance which can help inform future management strategies.