scholarly journals A STUDY OF ASSOCIATION BETWEEN ECONOMIC VALUE ADDED AND NET OPERATING PROFIT AFTER TAX: A CASE STUDY OF DIVIS LABORATORIES AND LUPIN LIMITED

2021 ◽  
pp. 8-14
Author(s):  
Dr. Martina M. Noronha ◽  
Ms. Deepa S. Pamnani
Keyword(s):  
Hypothesis Testing ◽  
Key Words ◽  
Positive Relationship ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Anova Test ◽  
Operating Profit ◽  
The Given

The purpose of this paper is to study relationship between Economic Value added and Net Operating Profit After Taxes Divis Laboratories and Lupin Limited. The period of study is 10 years ranging from 2009-10 to 2018-2019. Association is found between Economic Value Added and Net Operating Profit after Taxes for the given series and data is analysed by regression. ANOVA test is used to perform hypothesis testing. The study concludes that there is a positive relationship between EVA and Net Operating Profit After Taxes. KEY WORDS: Economic Value Added, Net Operating Profit after Tax

Financial Behaviour in a Mandatory Conversion Process: Empirical Evidence from Colombia

2020 ◽  
pp. 097215092096400
Author(s):  
Juan David González-Ruiz ◽  
Maria Isabel Acosta-García ◽  
Ramón Villa-García
Keyword(s):  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
Convertible Bonds ◽  
Economic Value Added ◽  
Operating Profit ◽  
Financing Costs ◽  
Financial Behaviour ◽  
A Company

Convertible bonds are attractive because they offer alternatives for both issuers and investors. Therefore, several companies have used this financial mechanism to raise capital. Although several studies have been published on this topic, mandatory convertible bonds (MCBs), which are subsets of convertible bonds, and their effect on economic value added (EVA) have not been explored deeply. This study analyses what happens to the EVA before, during and after the issuance when investors are involved as shareholders of a company issuing MCBs. A Colombian company is used as a case study. The results reveal that one of the main reasons behind the change in the EVA is not only the weighted average cost of capital or the invested capital but also the operating profit. The net operating profit after tax (NOPAT) depends on operating profit. Therefore, to generate a positive EVA, the NOPAT margin needs to be higher than the margin of financing costs.

scholarly journals The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA)

2021 ◽  
Vol 13 (6) ◽  
pp. 3075
Author(s):  
Miguel Ángel Martín Valmayor ◽  
Beatriz Duarte Monedero ◽  
Luis A. Gil-Alana
Keyword(s):  
Annual Report ◽  
Economic Value ◽  
Balance Sheet ◽  
Value Added ◽  
Social Value ◽  
Economic Value Added ◽  
The Social ◽  
Social Balance ◽  
Corporate Social

In this paper, we examine the concept of the social balance sheet (SBS) and its evolution in corporate social reports that large companies have to issue today in their yearly statements. The SBS allows companies to evaluate their compliance with corporate social responsibility during a specific period and quantify its level of accomplishment. From a methodological perspective, this research analyzed the information that should be contained in the SBS report comparing economic value added (EVA) with other social value added statements (SVA), analyzing also in detail the case of Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) bank as one of the pioneers in offering social reports. Along with this study, their metrics following EVA were recalculated and a more academic SVA statement was proposed for this specific case.

Siemens' Value-Driver Tree in Digitalization

2021 ◽  
pp. 197-220
Author(s):  
Cozmiuc Claudia Diana
Keyword(s):  
Value Creation ◽  
Business Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Sufficient Data ◽  
Product Lifecycle ◽  
Open Networks ◽  
Start Ups

This chapter is a descriptive and explicative case study about value creation at Siemens in an uncertain and in a certain environment. Siemens has implemented economic value-added-based management since 1998. The empirical data analysis highlights value creation at Siemens at the beginning of the innovation lifecycle, when the environment is uncertain, and at the end of the innovation lifecycle, when contracts are signed, and the environment becomes predictable. Innovation is first placed in open networks, in which start-ups are essential, to which venture capital is allocated using business models. This is the ideation stage of the product lifecycle, when competitive advantage, the essence of value creation in both theory and the Siemens example, is created. Innovation matures, and Siemens closes contracts with customers about existing customer offerings. These contracts are managed as projects and funded with equity and debt. This is the stage when sufficient data exists to plan economic value added, the focus of Siemens' corporate governance.

scholarly journals The Impact of the General Level of Prices and Operating Profit on Economic Value Added (EVA) (Analytical Study: ASE 2001 - 2015)

2017 ◽  
Vol 13 (11) ◽  
pp. 142
Author(s):  
Ebraheem Al Taha'at ◽  
Mohammad Abdel Mohsen Al-Afeef ◽  
Saqer Al Tahat ◽  
Muhannad Akram Ahmad
Keyword(s):  
Analytical Study ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Economic Value ◽  
Value Added ◽  
General Level ◽  
Sales Volume ◽  
Economic Value Added ◽  
Operating Profit ◽  
The Impact

This study aims to show the importance of the economic value added as one of the most modern to measure the financial performance for firms, then to know the effect of the general prices level and earnings before interest and taxes on EVA in the companies listed in (ASE) (2006-2015), the researcher addresses a random sample consisting of (46) Company, and uses regression model, which connects the dependent and independent variables.The results of the study shows that There is a significant impact for the general prices level and the earnings before interest and taxes on the economic value added, and also shows that 22% of the changes in the economic value added are due to general prices level and earnings before interest and taxes, and 78% of the changes are due to other factors.This study also recommends the need to manage of operating expenses because of the positive impact of operating profit on EVA value, and to take inflation into account when calculating the value of EVA, and also searching for other factors that could affect the value of EVA such as sales volume, cost of capital, and the growth in the total assets of the company's financial leverage, etc…

scholarly journals Analyzing Islamic Micro Finance Performance with Economic Value Added (EVA): Learning from Baitul Wat Tamwil (BMT) Usaha Gabungan Terpadu Sidogiri Indonesia

2014 ◽  
Vol 2 (2) ◽  
pp. 29
Author(s):  
Titik Inayati ◽  
Bambang Subroto ◽  
Achmad Fachan ◽  
Atim Djazuli
Keyword(s):  
Financial Performance ◽  
Average Cost ◽  
Cost Of Capital ◽  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
Economic Value Added ◽  
The Real ◽  
Operating Profit

Analyzing Islamic Micro Finance Performance with Economic Value Added (EVA). EVA analysis is used for deciding the regulations of investment of BMT. Monetary report is analyzed with  EVA, Net Operating Profit After Tax (NOPAT), Weighted Average Cost of Capital (WACC), and Invested Capital. The result of performance using EVA shows that BMT can create value. NOPAT underwent a significant increase compare with the capital fund. The profit that is created is higher than accounting profit which shows that BMT has a very good performance. The capital which is consists of debt and equity has been used efficiently and effectively so that it can increase the profit. The BMT officer should pay attention to the financial performance in order to decide the regulation and investment that will be done. Investment and activity which is done by BMT should be resulted more value so that it can give the real profit for the development of BMT.

scholarly journals Economic Value-Added Creation by Optimizing Capital Structure in Project Finance

2020 ◽  
Vol 3 (2) ◽  
pp. 46-60
Author(s):  
Bryan Charisma ◽  
Encep Amir
Keyword(s):  
Capital Structure ◽  
Economic Value ◽  
Balance Sheet ◽  
Weighted Average ◽  
Value Added ◽  
Project Finance ◽  
Economic Value Added ◽  
Operating Profit ◽  
Debt Repayment ◽  
Physical Asset

Infrastructure Projects are large investment by the public and/or private sector that required enormous financial resource commitment to build physical asset and facilities needed for economic development so that the company need project financing to support with. Project finance is based on debt repayment from project companies’ revenue and not on the sponsors or the developer’s balance sheet, so the project companies should assure the cash flow is sufficient for debt repayment and dividend payment. Beside that investors still have to analyze the value created in that project with highest positive Economic Value Added. Net Operating Profit After Tax (NOPAT) need to cover cost of invested capital to create value so that the ratio of NOPAT to total Project Cost (Return on Invested Capital) is should be more than the weighted average cost of capital (WACC). The capital structure doesn’t have an optimum weight and cost as long as the Return on Invested Capital (ROIC) higher than WACC.

scholarly journals Business performance assessment of small and medium-sized enterprises: Evidence from the Czech Republic

2021 ◽  
Vol 19 (3) ◽  
pp. 430-439
Author(s):  
Vojtech Stehel ◽  
Jakub Horak ◽  
Tomas Krulicky
Keyword(s):  
Performance Assessment ◽  
Business Performance ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
The Czech Republic ◽  
Economic Result ◽  
Risk Free Rate ◽  
The Given ◽  
Free Rate

Business performance assessment is one of the basic tasks of management. Business performance can be assessed using a number of methods. The basic ones include financial analysis, Balanced Scorecard or Economic Value Added (EVA). The paper is focused on SME business performance assessment based on Economic Value Added, calculated using the INFA build-up model. According to this method, companies were divided into four categories. The first category included companies with a positive EVA value. The second category included companies with negative EVA, but with the economic result above the risk-free rate. The third category included companies with a positive economic result above the risk-free rate. The fourth category included companies with a negative economic result. The model did not include companies with negative equity. The input represented 15 predictors based on their financial statements. The data were normalized and all extreme values, likely caused by a data rewriting error, were removed. Company performance is visualized by comparing Principal Component Analysis and Kohonen neural networks. Compared to similar research, the methods are compared using the data that analyzes the performance of companies. Both methods made it possible to visualize the given task. With regard to the purpose of facilitating the interpretation of the results, for the given case, the use of PC seems to be more appropriate. AcknowledgmentThis study has been supported by the Technology Agency of the Czech Republic under project No TL01000349.

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