FINANCIAL PERFORMANCE

MEASURES

Economic Value Added

(EVA)

Assists executive management to focus

on the long-term welfare of the
organization

The essentials of the EVA

concept requires the ff:

1. Only investing profits that return a

profit greater than the industry
average profit and the cost of capital
employed.
2. Using assets more intensely.
3. Divestment of all nonproductive
assets.

The profit zone

A. Slywotzky and D. Marrison (1997)

Arena of an organizations economic
activity where high profit is achieved.
The key to entering the project zone is
CUSTOMER- CENTRIC DESIGN.

Stock prize

Traditional measures of financial

performance.
It includes value creation, profitability
and customer satisfaction.
Stock market isnt necessary
rational

Sale to breakeven

May answer the question as to how far

sales can drop before an organization
begins to lose money.