Economic Value Added: Key to Predicting Company Success or Failure
The economic value added (EVA) is a useful tool for measuring a company's real profit and predicting its success or failure. EVA considers both the cost of capital and the company's risk level, making it a better indicator than other methods. By using EVA, companies can compare their performance with others more accurately. Maximizing shareholders' profits is the main goal for any company, which is why studying EVA is crucial in today's business world.