Articles: 3,246  ·  Readers: 823,354  ·  Value: USD$2,139,535

Press "Enter" to skip to content

Posts tagged as “Economic Value”

Capital Management

For any business aiming for sustainable profitability and long-term health, managing capital effectively is non-negotiable. This discipline moves beyond mere bookkeeping; it is a strategic framework that governs how a company allocates its most precious resources.

(6/6) Strategy: A Manager’s Guide to Strategic Management

Strategic Management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. For managers, strategy is not an annual planning exercise; it is a continuous, dynamic process of defining competitive positioning and making trade-offs to secure long-term advantage.

Economic Value Added (EVA)

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.

Shareholder Value Analysis (SVA)

Shareholder Value Analysis (SVA), often associated with the work of Alfred Rappaport, is a sophisticated approach to financial management and strategic decision-making. It is founded on the principle that the primary objective of a company should be to maximize the economic value created for its equity shareholders.

Allocating Corporate Capital Fairly

The core principle of "fairness" in this context is generally tied to economic value creation, which means prioritizing investments that promise the highest risk-adjusted returns and align with the company's long-term strategy.