Economic Value Added (EVA) is a financial performance metric that measures a company's true economic profit—the value created in excess of the required return of the company's investors.
Posts tagged as “Capital Employed”
Business Dictionary
October 5, 2025 |
The ultimate business dictionary featuring nearly 10,000 expertly defined terms and concepts. Quickly find precise, accessible definitions for everything from basic finance to complex industry jargon. Your essential resource for business knowledge and clarity.
Return Ratios
September 27, 2025 |
For investors, managers, and analysts, mastering these metrics—particularly Return on Investment (ROI), Return on Assets (ROA), and Return on Equity (ROE)—is fundamental to making informed decisions and driving value.
Profitability Ratios: Return on Assets (ROA)
June 16, 2025 |
At its core, Return on Assets is a profitability ratio that reveals how much profit a company earns for every dollar of assets it owns.
Absolute Size or Comparative size of A Business Organization
June 16, 2025 |
When discussing the size of a business, it’s helpful to distinguish between its absolute size and its comparative size. These two perspectives offer different insights…
Importance of Capital Employed
June 16, 2025 |
Capital employed is a crucial financial metric that represents the total funds invested in a company's operations, encompassing both equity and debt.
Return on Capital Employed (ROCE) for Strategic Choice
April 11, 2024 |
Return on Capital Employed (ROCE) serves as a beacon for businesses navigating the complexities of strategic decision-making.
What Is Strategic Choice?
February 4, 2024 |
Strategic choice refers to choosing the option to get where the business wants to be from previously identified opportunities.
Different Types of Productivity
January 8, 2024 |
Productivity is a relative measure of how efficiently the inputs are changed into output - the ratio of outputs to inputs in a production process.
Introduction to Strategy
October 26, 2023 |
Strategy is important in business organizations of all sizes ranging from commercial for-profit-only businesses to social not-for-profit business organizations.
Growth of Firms
October 11, 2023 |
This article describes size of firms. It explains why growth of firms is important and identifies basic methods of business growth - external and internal.
Debt Ratios: Gearing
February 22, 2022 |
Gearing measures how much of the capital employed in a business is financed by long-term debt, or Long-term Liabilities.
Profitability Ratios: Return on Capital Employed (ROCE)
February 14, 2022 |
Return on Capital Employed (ROCE) is ratio between Net Profit Before Interest and TAX, and Capital Employed - Share Capital plus Retained Profit.
Profitability Ratios: Return on Equity (ROE)
February 12, 2022 |
Return on Equity (ROE) is ratio between Net Profit Before Interest and TAX. and Equity. It compares Net Profit Before Interest and TAX with Equity.
5 Different Types of Ratios in Details
February 5, 2022 |
After a brief introduction to five different types of ratios in the last article, let’s take a look at those accounting ratios with more details.
The Main Parts of Balance Sheet
January 20, 2022 |
Balance Sheet is a snapshot of the business's financial position. It is an accounting statement that records the assets, liabilities and owners' equity at a particular date.
9 Factors That Influence Finance Choice
December 19, 2021 |
Finance managers need to consider many factors when it comes to making the strategic finance choice between alternative sources of finance.
Long-Term External Sources of Finance (Debt): Bonds (Debentures) (3/4)
December 12, 2021 |
Bonds, or debentures, are fixed-income financial instruments, essentially long-term loans issued by a business to investors.
Long-Term Finance: Debt Finance vs. Equity Finance
December 7, 2021 |
The business has two options when it comes to using capital for growth. As long-term finance, it can choose Debt Finance or Equity Finance.