EVA over a Period of Time
Mehul Doshi , CxO / Board, India, SIG Leader
Peter you have highlighted a good post for organizing EVA improvement.
A point to add is EVA should not be looked from a short term perspective, because anything new or innovative would always incur a impact on EVA like research and development or risk taking to grow a unique formulae etc.
EVA should be balanced over a period of time as technology obsolesce in certain industry is not only crucial for growth and improvement, but also lead in the values and objectives of the company. Too much improvement of EVA hence from auditors view is organisation moving towards COST CONTROL or FREAKS and not taking adequate well calculated risk.