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Coke vs. Pepsi
Essay specific features
Written by:
Christina B
Date added:
January 27, 2015
Level:
University
Grade:
B
No of pages / words:
15 / 4161
Was viewed:
5628 times
Rating of current essay:
Essay content:
An increasing number of companies are relying heavily upon EVA to evaluate and reward managers from all functional departments.
So what is EVA?
EVA is a value-based financial performance measure based on Net Operating Profit after Taxes (NOPAT), the Invested Capital required to generate that income, and the Weighted Average Cost of Capital (WACC)...
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EVA represents the owners' earnings, as opposed to paper profits. The formula to measure EVA is:
EVA = NOPAT - (Invested Capital x WACC). (1)
EVA is a dollar amount. If the dollar amount is positive, the company has earned more net operating profit after taxes than the cost of the assets used to generate that profit, in other words, the company has created wealth...
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