Eva Performance Measure

Vidyasagar University Journal of Commerce Vol.11, March 2006

EVA BASED PERFORMANCE bar: A CASE STUDY OF DABUR INDIA LIMITED
Debdas Rakshit*
ABSTRACT
Traditional measures of corporate carrying out argon many in number. Measures using common bases are Net Profit Margin, Operating Profit Margin, Return on Investment (ROI), Return on Net Worth (RONW), Earning Per distribute (EPS) etc. Among these, again ROI is recognized as the most touristy yardstick of overall performance. But it is often argued that, in general, these conventional measures fail to identify the true surplus. Economic Value Added (EVA) is advocated as a new measure of corporate performance that focuses on clear surplus in contrast to the traditionally utilize profit based indicators. For evaluation of the efficiency of any decision, place mankind or value addition aspect is of last-place importance in the present backdrop of corporate governance. Although adopting a holistic approach safeguarding the interests of all stakeholders is being emphasized and justly so, it should be kept in mind that value creation or value addition aspect is of prime reflection in the assessment of the corporate policy guidelines.



If that is not satisfied, malign signals exit be emitted from securities market and the continuance of the operations of the entity will be at stake. In view of the above considerations, in the present paper an attempt has been made to analyse the pecuniary performance of Dabur India Limited by using EVA.

Introduction The confines Economic Value Added (EVA) is a registered trademark of dreary Stewart & Co. of revolutionary York City (USA). Bennett Stewart in his book, The Quest for Value, used the terminal EVA with a symbol â„¢ as super script, which is the normal apply of referring to any registered trademark whenever the term is used. Thus EVA is actually Stern Stewart & Co.s trademark for a specific method of calculative economic profit. The Quest for Value was published in 1991. shaft of light Drucker...If you want to get a full essay, order it on our website: Ordercustompaper.com



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