Economic Value Added (EVA) Case Study: Nestlé S.A.
If you haven’t read the article on the Economic Value Added (EVA) metric, please, take a look here, before you read on. Introduction In today’s post, we are doing a short case study, trying to calculate the Economic Value Added (EVA) for Nestlé for FY 2018, using actual data available in the public domain. Nestlé […]
Breaking down the Economic Value Added (EVA) Calculation
Introduction to the Economic Value Added (EVA) The EVA (Economic Value Added) is an indicator of profitability and a measure of financial performance, based on residual wealth. It is the excess profit above the cost of capital, generated by the business, adjusted for taxes, and presented on a cash basis. The consulting firm Stern Value […]