Abstract
Article focuses on analyzіng of the definition company economic value added relevance. Corporate management is a rather complex and versatile process. It must be based on accurate and constructive data. Accounting calculations are not a clear indicator of the state of the company in some cases. Because they don`t provide sufficiently meaningful information on the real efficiency of economic activity. As a result, it is difficult for owners and shareholders to determine the real economic value of companies in today's economic environment. Therefore the use of the EVA concept is becoming so popular. However, the question of its validity is still relevant for discussion all over the world. So, we are faced with the aim of studying the theoretical and practical principles of using economic value added as an important financial management indicator to evaluate the efficiency and development of the company. It describes the basis of the emergence of this concept. It is proved that EVA indicator modeling is an effective tool of the general system of financial management at the company. The benefits that owners, shareholders, management and potential investors receive when using EVA indicator are identified. The main is a real understanding of the efficiency of the company. The study compared EVA to other alternative tools for similar purposes and identified it as both simple and effective. The formulas for calculating the indicator are given. All of them are reduced to determining whether the profitability of the company covers the costs incurred and whether there is a formation of value added. On the basis of formulas, a constructive method of EVA calculation is constructed. It is found that the result determined in the calculation process may be lower than zero or equal to it in the case of unproductive management. What means that values above zero and positive dynamics are the most desirable for the company. The steps of application of the concept for strategic planning are presented. It is determined which components of the EVA model should be influenced to optimize and increase the value of EVA indicator.
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