difference eva ratios
Economic value added (EVA) is a method of measuring the financial performance of an enterprise. The EVA is calculated by multiplying the enterprise's capital by its cost of capital and deducting the resulting figure from the net operating profit after tax (NOPAT).his indicator can determine if the enterprise is really creating wealth. In looking at how EVA relates to financial ratio analysis, this aim of measuring economic profit is important. The cost of capital is the annual return required by the lenders and shareholders of the enterprise in return for providing the capital.