Image for E.N.  (Economic Value Added)

E.N. (Economic Value Added)

Economic Value Added (EVA) is a financial measure that shows a company's true profit after covering the cost of capital. It indicates whether the company is generating value beyond the expenses of financing its assets. If EVA is positive, the company is creating wealth for shareholders; if negative, it’s destroying value. Essentially, EVA helps assess how well a company is using its resources to generate returns that exceed the minimum required to satisfy investors and lenders. It provides a clearer picture of economic performance than traditional profit measures alone.