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    The EVA Challenge (Review and Analysis of Stern and Shiely's Book)
    The EVA Challenge (Review and Analysis of Stern and Shiely's Book)
    The EVA Challenge (Review and Analysis of Stern and Shiely's Book)
    Ebook37 pages23 minutes

    The EVA Challenge (Review and Analysis of Stern and Shiely's Book)

    By BusinessNews Publishing

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    About this ebook

    The must-read summary of Joel Stern and John Shiely's book: "The EVA Challenge: Implementing Value-Added Change in an Organization".

    This complete summary of the ideas from Joel Stern and John Shiely's book "The EVA Challenge" shows how Economic Value Added is the best and most direct measure of whether a business is creating wealth when the cost of its capital has been taken into account. EVA also aligns precisely the interests of the company’s owners with the interests of the managers in a way that is free of the distortions and vagaries of accounting conventions. In their book, the authors demonstrate that effectively harnessing EVA will require three components: a measurement system, an incentive system and a financial management system. This summary explains each of these components and how you can implement them to analyse the success of a business.

    Added-value of this summary:
    • Save time
    • Understand key concepts
    • Expand your knowledge

    To learn more, read "The EVA Challenge" and find out how you can master the art of Economic Value Added.
    LanguageEnglish
    PublisherBusiness Book Summaries
    Release dateNov 12, 2014
    ISBN9782511021699
    The EVA Challenge (Review and Analysis of Stern and Shiely's Book)

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      Book preview

      The EVA Challenge (Review and Analysis of Stern and Shiely's Book) - BusinessNews Publishing

      Book Presentation: The EVA Challenge by Joel Stern and John Shiely

      Book Abstract

      About the Author

      Important Note About This Ebook

      Summary of The EVA Challenge (Joel Stern and John Shiely)

      Section 1: The Problem With Conventional Valuations

      Section 2: The Solution – EVA

      Section 3: The Six Keys Of EVA Implementation

      Section 4: A Working Example

      Book Abstract

      Main Idea

      Economic Value Added (EVA) is the best and most direct measure of whether a business is creating wealth when the cost of its capital has been taken into account. EVA also aligns precisely the interests of the company’s owners (its shareholders) with the interests of the managers in a way that is free of the distortions and vagaries of accounting conventions.

      The challenge is to harness EVA effectively to increase true economic profitability. That will require three components – a measurement system, an incentive system and a financial management system which are all EVA based. Without those components, it will be impossible to tell whether or not a business is succeeding in making its capital worth more over time. With those elements properly implemented, EVA principles will unerringly guide the company onwards and upwards as managers and employees focus on one specific objective: How do we improve our EVA?

      In the final analysis, EVA is the best and most definitive financial performance measure. Smart com panies worldwide are harnessing EVA to optimize their creation of shareholder wealth over time by making it the focal point

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