As an Amazon Associate I earn from qualifying purchases.

Economic Value Added (EVA) Definition and Explanation PDF Download

Learn Economic Value Added (EVA) definition in hrm with explanation to study “What is Economic Value Added (EVA)”. Study economic value added (eva) explanation with HRM terms to review HRM course for online MBA programs.

Economic Value Added (EVA) Definition:

  • Net operating profit of a firm after the cost of capital is deducted.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Economic Value Added (EVA) Explanation:

Economic value added (EVA) is a proportion of an organization's money related execution dependent on the remaining riches determined by deducting its expense of capital from its working benefit, balanced for assessments on a money premise. EVA can likewise be alluded to as monetary benefit, as it endeavors to catch the genuine financial benefit of an organization. This measure was concocted by the board counseling firm Stern Value Management, initially joined as Stern Stewart and Co. EVA is the gradual distinction in the pace of return over an organization's expense of capital. Basically, it is utilized to gauge the worth an organization creates from assets put into it. On the off chance that an organization's EVA is negative, it implies the organization isn't creating an incentive from the assets put into the business. Alternately, a positive EVA demonstrates an organization is delivering an incentive from the assets put resources into it.

Keep Learning HRM Explanations

What are Ergonomics?

Ergonomics (or human components) is the logical control worried about the comprehension of communications among people and different components of ...

What is Duty?

Most associations, organizations, and clubs have assigned officials depended to complete certain obligations and duties. A considerable lot of the ...

What is Tax Equalization Plan?

Tax equalization plan is apparently set up to urge ostracizes to work for their managers any place they might be ...

What is Hostile Environment?

A hostile environment is characterized as a domain on grounds that, through badgering conduct (e.g., physical, verbal, realistic or composed) ...

What is Bona Fide Occupational Qualification (BFOQ)?

Bonafied occupational qualification (BFOQ) are business capabilities that businesses are permitted to consider while settling on choices about enlisting and ...

What are Paid-Time-Off (PTO) Plans?

Paid time off (PTO) is an advantage program offered by numerous organizations which enables workers to take off for a ...