EVATrainingEVA最好的培训资料.pptxVIP

Introduction to EVA Management System ContentsWhat is EVA?The calculation of EVAThe EVA management systemContentsWhat is EVA?The calculation of EVAThe EVA management systemEVA? is Earnings After the Cost of Capital Revenues- Operating Costs- Depreciation-/+ Adjustments- Taxes= Operating Income After Tax (NOPAT)Capital x c% Capital Charge= EVA?P/LB/SObjective: Continuous Improvement in EVAThe intrinsic value is the determinant of the market value in efficient capital marketFinancial measuresIntrinsic valueOperating metricsMarket valueCompetitive strategyBusiness modelManagement systemOperating efficiency Market share, Unit cost, scrap rate, delivery time ROI, Capital turnover, margin EVA MVA, Stock priceAs a measure of business intrinsic value, EVA correlates with stock price better than other measuresUS as exampleCorrelation with stock price50%40%30%20%10%EVA ROE Cash Flow EPS RevenueEVA measure gives more insights into the businessFrom Enron’s 2000 Annual Report (Letter to Shareholders):Enron’s performance in 2000 was a success by any measure…The company’s net income reached a record in 2000. Enron is laser-focused on earnings per share, and we expect to continue strong earnings performance.EVANet IncEPS(in mil)(in mil)ContentsWhat is EVA?The calculation of EVAThe EVA management systemNOPATCapitalEVAPLBalance SheetCash Flow StatementEVAFrameworkAccountingFrameworkAdjustmentsFrom the traditional accounting model to the economic model of the firmSeparate financing effects from operating performanceExtend matching of costs with revenue to economic basis Separate operating from non-operatingEliminate book keeping entries/reserves that distort cash flow and reduce objectivitySo as toTo better reflect value creationTo motivate the right value-creating behaviorOptimizing the EVA MeasureMaterialityDifference in EVA with or without adjustment – Is it material?Set a rule of thumb and use common senseMotivationAdjustment must motivate managers to do t