THE IMPACT OF ECONOMIC VALUE ADDED (EVA) ON STRATEGIC FINANCIAL MANAGEMENT AND FIRM VALUE: A CASE STUDY OF APPLE INC

Abstract

In the context of growing competition at the international level and instability in financial markets, issues of company value management are becoming increasingly important.

Traditional financial performance indicators such as profit or profitability are increasingly being criticized for failing to fully reflect the real value of creation for shareholders.

In this quarter, the concept of economic value added (EMF) was widely recognized as a tool for evaluating the effectiveness of financial management and long-term value growth of a company.

The Economic Value Added Index (EVA) makes it possible to take into account the cost of capital raised and, most importantly, to more accurately assess the effectiveness of management decisions in terms of creating shareholder value.

The use of EVA in strategic financial management ensures the alignment of operational, alternative and financial solutions in order to maximize the value of the company. EVA analysis is becoming especially relevant for large multinational corporations operating in conditions of high costs and constant pressure from savings.