Economic Value Added (EVA) for Small Business

15.8.1998

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Table of Contents
Economic Value Added (EVA) for Small Business
What is Economic Value Added (EVA)?
What is Economic Value Added (EVA)? (Cont.)
EVA Basic Premise
Why is EVA also useful for small companies (even with less than 100 employees) ?
Why is EVA also useful for small companies (even with less than 100 employees) ? (Cont.)
What is Needed to Calculate Company's Economic Value Added (EVA)?
Illustration: Common Income Statement
Illustration: Common Balance Sheet
EVA Calculation Steps
Step 1: Calculate Net Operating Profit After Taxes (NOPAT)
Step 1: Calculate Net Operating Profit After Taxes (NOPAT) (Cont.)
Step 2: Identify Company's Capital (C)
Step 3: Determine Capital Cost Rate (CCR)
Step 4: Calculate Company's EVAThe Complete Procedure: Calculate EVA in the Internal Reporting
EVA Implementation by a Small Company
How can the Management in a Small Company Improve EVA?
Conclusion
Conclusion (Cont.)
Questions ?


Author:
Narcyz Roztocki and Esa Mäkeläinen
Email: Esa.Makelainen@iki.fi
Home Page: http://www.evanomics.com