经济附加值外文翻译.docVIP

外文翻译 原文 Economic Value Added Material Source:Financial Strategies for the Manager Author:Jincheng wang,Charles Priester The use of EVA as a yardstick of a companys financial performance has been steadily increasing in recent years.It is probably true that currently (in 2007) the majority of financial analysts still focus mainly on the widely known DuPont ratios.That is,the ability of assets to generate sales (Trev/Assets) and the ability of those sales to generate profits (NIAT/Trev) and the degree that assets are financed with investors funds (Assets/Equity); and by combining those three ratios calculating the returns that those investors funds generate i.e. (NIAT/equity) or roe (i.e. Return of Equity). But, the use of EVA as a financial performance indicator is growing steadily.to put it in simple words, EVA measures a companys ability to obtain economic benefits that exceed the rent that such a company pays for the use of the owners and lenders resources employed. EVA, therefore, is a powerful measure of managerial performance. To understand the meaning of EVA it is useful to look at the Balance Sheet of a company in a new light. From this NOPAT the company has to pay a Weighted Average Rent for the use of those two sources of funds (Liabilities and Equity). Let us call this weighted average rent percentage, the weighted average cost of capital or WACC%. Multiplying WACC% by the total amount of assets employed gives us the dollar value of WACC or WACC$. To calculate EVA, we simply subtract from the NOPAT generated by the companys Assets, the WACC$ (i.e.the dollar value of the weighted Average Cost of Capital) which the company owes lenders and investors for the use of their money. To state it symbolically: EVA = NOPAT – WACC$ Which can be written as: EVA = (EBIY – TAX) – (WACC% × ASSETS) From this equation we can immediately see that EVA levels are powerfully influenced by a companys ability to earn operating profits (EBIT), its taxation, its cost of funds