Two variables affecting the economic value added (EVA)

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F17%3A39911141" target="_blank" >RIV/00216275:25410/17:39911141 - isvavai.cz</a>

Výsledek na webu

<a href="https://is.muni.cz/do/econ/sborniky/70896034/EFS2017-Proceedings_1_final.pdf" target="_blank" >https://is.muni.cz/do/econ/sborniky/70896034/EFS2017-Proceedings_1_final.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Two variables affecting the economic value added (EVA)

Popis výsledku v původním jazyce

Economic value added EVA is one of the most important indicators of financial analysis, however, it has not been being used widely in practice yet. A possible reason is its calculation that is more complicated than for conventional one, e.g. ratios. This complexity primarily involves calculating the average weighted cost of capital (WACC) and unequal approach to the calculation of net operating profit after tax (NOPAT), the WACC and NOPAT are initial variables for the calculation of EVA. The aim of this paper is to summarize the basic approaches to calculating WACC, particularly the cost of equity and to calculate NOPAT and finally to simplify the calculation of EVA with mathematical analogy modifications. Mathematical adjustment has proved that economic value added is essentially a net profit weighted by the debt proportion in the overall capital structure. This post is to submit a simplification of the indicator of economic value added in an effort to extend its application in practice.

Název v anglickém jazyce

Two variables affecting the economic value added (EVA)

Popis výsledku anglicky

Economic value added EVA is one of the most important indicators of financial analysis, however, it has not been being used widely in practice yet. A possible reason is its calculation that is more complicated than for conventional one, e.g. ratios. This complexity primarily involves calculating the average weighted cost of capital (WACC) and unequal approach to the calculation of net operating profit after tax (NOPAT), the WACC and NOPAT are initial variables for the calculation of EVA. The aim of this paper is to summarize the basic approaches to calculating WACC, particularly the cost of equity and to calculate NOPAT and finally to simplify the calculation of EVA with mathematical analogy modifications. Mathematical adjustment has proved that economic value added is essentially a net profit weighted by the debt proportion in the overall capital structure. This post is to submit a simplification of the indicator of economic value added in an effort to extend its application in practice.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

European Financial Systems 2017 : proceedings of the 14th International Scientific Conference

ISBN

978-80-210-8609-8

ISSN

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e-ISSN

neuvedeno

Počet stran výsledku

6

Strana od-do

230-235

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno

Datum konání akce

26. 6. 2017

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000418110700028