Why EVA works for Varity. (economic value added; Varity Corp.)(The Two Faces of EVA): An article from: Chief Executive (U.S.)

This digital document is an article from Chief Executive (U.S.), published by Chief Executive Publishing on January 1, 1996. The length of the article is 1395 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Varity Corp. has been using Economic Value Added (EVA) as a measure of shareholder value creation since 1993. In the past, the firm used a variety of measurement tools ranging from earnings-per-share to discounted cash flow to assess its financial outlook. It decided to shift to EVA to connect its improving financials with shareholder interests and to create a new corporate culture. Since its adoption FY 1993, EVA has become an importance part of Varity's operations, with its influence being felt from the boardroom to the shop floor and in every one of the company's 80 plants and offices all over the world. Varity uses the EVA model to identify business activities that return more than the cost of capital, to review potential joint ventures, to evaluate business initiatives, and to assess whether the sale of assets or businesses is beneficial to shareholders.

Citation Details
Title: Why EVA works for Varity. (economic value added; Varity Corp.)(The Two Faces of EVA)
Author: Victor A. Rice
Publication:Chief Executive (U.S.) (Magazine/Journal)
Date: January 1, 1996
Publisher: Chief Executive Publishing
Issue: n110 Page: p40(2)

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