Written by

Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.

Bernard’s latest books are ‘Future Skills’, ‘The Future Internet’, ‘Business Trends in Practice’ and ‘Generative AI in Practice’.

Generative AI Book Launch
View My Latest Books

Follow Me

Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

View Latest Book

Follow Me

EVA

2 July 2021

EVA (or Economic Value Added) is a measure of a company’s economic profit. The indicator was developed and copyrighted by Stern-Stewart. Central to the EVA measure is the idea that companies have to take into account the cost of capital (for both equity and debts) before they can make a judement on whether the company has added real economic value or not.

The argument is that here is an opportunity cost of capital, i.e. instead of investing into a specific company or business venture, investors could put their money in other places such as Government bonds, the bank or equity markets). In order to identify true economic value it is therefore important to deduct the cost of capital (opportunity costs).

EVA = NOPAT – (C x K)

Where:

NOPAT is Net Operating Profit after Tax

C is the Weighted Average Cost of Capital (WACC), which represents the rate that a company is expected to pay on average to all its security holders to finance its assets

K is the economic capital employed

This indicator is included in the book: Key Performance Indicators – the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

Back to KPI Library
Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

Related Articles

How Generative AI Will Enhance The Supply Chain

Savvy business leaders are already beginning to identify use cases for generative AI in their organizations.[...]

6 Ways Generative AI Will Transform Healthcare

Generative AI is ushering in a transformative era in healthcare, with far-reaching implications for patient care, diagnostics, and more.[...]

Did OpenAI Sora Just Kickstart The Era Of Generative Video?

Just a few weeks back, I wrote that we are probably still some way from being able to create a movie from a natural language prompt.[...]

The Biggest AI Trends In The Next 10 Years

Although I like to write about future predictions for the world of technology and business, I’m usually focused on what’s coming up in the next five years.[...]

The Role Of Generative AI In HR

Generative AI is one of the most transformative technologies that humans have ever had access to.[...]

The Amazing Ways Walmart Is Using Generative AI

Walmart is no stranger to adopting new technologies and embracing transformation.[...]

Sign up to Stay in Touch!

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.

He is a best-selling author of over 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.

He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.

Bernard’s latest book is ‘Generative AI in Practice’.

Sign Up Today

Social Media

0
Followers
0
Followers
0
Followers
0
Subscribers
0
Followers
0
Subscribers
0
Yearly Views
0
Readers

Podcasts

View Podcasts