Advantage of Cash Value Added Concept versus Economic Value Added


 
Cash Value Added > Forum > Advantage of Cash Value Added Concept versus Economic Value Added

Advantage of Cash Value Added Concept versus Economic Value Added
Christian Schulz
The cash value added concept is based, as opposed to economic value added, on cash flow figures and therefore offers little accounting and valuation options to distort the output.
In this context, the following statement by Terry Smith is relevant: "Profits are someone's opinion... Whereas cash is a fact"....Sign up
 

 
Other Criticisms of EVA Concept
Georg Meyer
Additionally the following criticisms can be mentioned on the EVA concept:
The correction of EBIT is time-consuming and complex, because it req...Sign up
 

     
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Cash Value Added
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  • Advantage of Cash Value Added Concept versus Economic Value Added

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