--%>

Comparison between EVA and Ratio Analysis

Comparison between EVA and Ratio Analysis: EVA helps in measuring the economic performance of the company. It is the profit earned by the firm less the cost of financing the firm’s capital. It shows that the shareholders gain when the return from the capital employed is greater than the firm’s capital. Ratio analysis on the other hand shows calculation of different ratios to determine the liquidity, profitability, etc. of the company. There is no single ratio to show the overall health of the company.

   Related Questions in Business Economics

  • Q : Innate psychological attributes of

    As illustrated by Adam Smith that there are two innate psychological attributes of humans. One is which people have a powerful wish to better their individual circumstances. The other is as human beings so we are: (1) more interested

  • Q : Problem on opportunity cost buying a

    After agonizing regarding whether to buy a hot dog or a hamburger along with his last dollar while he goes to the fair, Jeeter at last chooses the hot dog. The hamburger shows Jeeter's: (i) normative choice, because it would be more nutritious. (ii) opportunity cost o

  • Q : Assertion for the levying of a tax on

    Use the circular flow model to confirm this assertion for the levying of a tax on air polluters?

  • Q : Government expenditures on goods and

    Explain Government expenditures on goods and services and transfer payments?

  • Q : Major type of expenditure at the state

    What is the most important source of revenue and the major type of expenditure at the state level?  

  • Q : Elucidate Participants in international

    Elucidate Participants in international trade of U.S. and World Trade?

  • Q : Define internal rate of return What do

    What do you understand by the term internal rate of return?

  • Q : Explain the shapes of the

    Specify and explain the shapes of the marginal-benefit and marginal-cost curves and use these curves to determine the optimal allocation of resources to a particular product.  If current output is such that marginal cost exceeds marginal benefit, should more or l

  • Q : Demand supply with the aim of diagrams

    with the aim of diagrams show the difference between A change in demand and A change in quantity demand

  • Q : Perfect competition leads the economic

    The perfectly competitive market structure benefits consumers since: w) firms do not generate goods at the lowest possible price within the long run. x) firms are forced through competitive pressure to be as efficient as possible. y) firms add a much