EVA(Economic Value Added)是经济增加值的英文缩

EVA (Economic Value Added) is the abbreviation of economic value added, means income after the cost of all invested capital, including equity and debt deducted from net operating profit after tax. Its core is a capital investment has a cost, higher corporate earnings will only create value for its shareholders when the capital cost (including the cost of equity and cost of debt). <br>The company annually creates economic value added tax equal to the difference between the net operating profit to total capital cost. Where the cost of capital includes the cost of debt capital, including the cost of equity capital. <br>From the point of view of arithmetic, EVA is equal to after-tax operating profit minus the cost of debt and equity, the remaining income (Residual income) after all costs are deducted. EVA is an evaluation of the true "economic" profit, or that is a net operating profit compared with the same investors minimum return of capital investment and other risks similar securities, exceeds or falls below the magnitude of the latter. <br>EVA is an evaluation of business owners effective use of capital and the ability to create value for shareholders, the ultimate business objectives reflect the corporate business performance evaluation tool.

Eva is an acronym for Economic Value Added, which refers to the income derived from the net operating profit after tax, which excludes the full cost of capital invested, including equity and debt. Its core is that capital investment is cost-effective, and a company's profit stakes only higher than its cost of capital (including equity costs and debt costs) will create value for shareholders.<br>The economic value added created by the company each year is equal to the difference between net operating profit after tax and the total cost of capital. The cost of capital includes the cost of debt capital, as well as the cost of equity capital.<br>Arithmetic, EVA is equal to after-tax operating profit minus debt and equity costs, and is the residual income (Residual income) after all costs are deducted. EVA is an evaluation of the real "economic" profit, or, in other words, a net operating profit that exceeds or falls below the minimum return on other marketable securities that investors use the same capital to invest in other marketable securities that are similar to the risk.<br>EVA is a kind of business performance appraisal tool to evaluate the effective use of capital and create value for shareholders, and to reflect the final business objectives of enterprises.

EVA (economic value added) is the abbreviation of economic value added. It refers to the income after deducting the total cost of invested capital including equity and debt from the after tax net operating profit. Its core is that capital investment has cost. Only when the profit of an enterprise is higher than its capital cost (including equity cost and debt cost), can it create value for shareholders.<br>The economic added value created by the company every year is equal to the difference between the after tax net operating profit and the total cost of capital. The cost of capital includes the cost of debt capital and the cost of equity capital.<br>From the arithmetic point of view, EVA is equal to after tax operating profit minus debt and equity cost, which is the residual income after all costs are deducted. EVA is the evaluation of real "economic" profit. In other words, it means that the net operating profit exceeds or is lower than the minimum return of investors investing in other securities with similar risks with the same capital.<br>EVA is a tool to evaluate the ability of managers to use capital effectively and create value for shareholders, which reflects the ultimate business objectives of enterprises.<br>