EVA Ratio In Industrial Companies Analysis

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Authors

SUCHÁNEK Petr KRIŠTOF Martin

Year of publication 2003
Type Article in Proceedings
Conference Management, Economic and Business in new Europe
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords EVA ratio; financial analysis
Description The paper gives a notice to risks and problems associated with using the EVA ratio in corporate praxise. We used partly experiences and effects from our research: Multifactorial Analysis of the Czech Companies Succesfullness. The article shows the result of the EVA analysis from twenty tree Czech companies from different branches of industry that were fairly analysed. The methodology was based on standard procedures used by Ministry of Industry and Trade or Czech Statistical Office uses. Our hypothesis stated that the EVA Ratio is useful tool not only for evaluating the successfulness of a company and can be used for determination of break-points in history of a company. This hypothesis has been partially verified - 70 % of managers involved in our qualitative research confirmed determined period (or year) as a break point, while the others disagreed or explained this break-point as a result of accounting operations or large investment.
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