Economic value added (EVA)
Term · Insurance and risk management · MLC-T-INS-001256
A financial performance metric that measures a company's true economic profit by subtracting the cost of capital from its net operating profit after tax. EVA indicates whether a company is creating value for its shareholders above the cost of the capital employed. A positive EVA suggests that the company is generating returns greater than its required rate of return, while a negative EVA indicates value destruction.
| Identifier | MLC-T-INS-001256 |
|---|---|
| Field | Insurance and risk management |
| Abbreviation | EVA |
Record as JSON
{
"id": "MLC-T-INS-001256",
"term": "Economic value added (EVA)",
"field": "Insurance and risk management",
"definition": "A financial performance metric that measures a company's true economic profit by subtracting the cost of capital from its net operating profit after tax. EVA indicates whether a company is creating value for its shareholders above the cost of the capital employed. A positive EVA suggests that the company is generating returns greater than its required rate of return, while a negative EVA indicates value destruction.",
"abbreviation": "EVA",
"url": "https://mlchart.com/terminology/insurance/economic-value-added-eva/"
}
Record 1,088 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.