We may earn an affiliate commission when you visit our partners.

Profit Analysis using Economic Value Added

In this 1-hour long project-based course, you will learn how to calculate the Weighted Average Cost of Capital, calculate capital invested, finance charge, and NOPAT, and use financial statements to calculate Economic Value Added. Economic Value Added is one of the most critical metrics in financial modeling and analysis and is used to measure the profitability of the projects and management performance.

Note: This course works best for learners who are based in the North America region. We're currently working on providing the same experience in other regions.

It is recommended to take the Introduction to Valuation with WACC and Analyzing Company's Performance using Ratios projects first.

Enroll now

Or subscribe to Coursera Plus

And get unlimited access to Coursera

What's inside

Syllabus

Profit Analysis using Economic Value Added

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

May be of use to students who want to understand management performance

Suitable for beginners wanting to calculate Economic Value Added

Useful for students who want to calculate Weighted Average Cost of Capital

May be of interest to students wanting to measure the profitability of projects

Prerequisites may need to be taken before enrolling in this course

Save this course

Save Profit Analysis using Economic Value Added to your list so you can find it easily later:

Save

Reviews summary

Profitability analysis with eva

Learners say this Profitability Analysis using Economic Value Added course is insightful, great, and easy to follow. It's especially helpful for financial analysis, with well-explained concepts and an excellent project. Overall, learners say the course provides a solid foundation while acknowledging it covers the topic at a high level.

Learners say this course helps them develop useful skills.

"This course was really helpful"

"It helped in teaching this topic to my students in a more confident manner"

Learners find this course's concepts well explained.

"Excellent explanations."

"Concepts are discussed well."

"This course has helped me a lot I have learnt so many things"

Learners note that the course's discussion is kept at a high level.

"it is a good course. it will not take a long of a time to finish. I think the course will give you brief information not deep."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Profit Analysis using Economic Value Added with these activities:

Review financial accounting concepts

Show steps

Review key financial accounting concepts to strengthen your understanding of the materials covered in this course, such as the balance sheet, income statement, and cash flow statement.

Browse courses on Financial Accounting

Show steps

Review lecture notes and textbooks from previous accounting courses
Complete practice problems and exercises to reinforce your understanding

Join a study group to discuss course concepts

Show steps

By actively participating in a study group, you can engage in discussions, share insights, and learn from your peers, which can enhance your understanding and retention of the course material.

Show steps

Find or create a study group with other students in the course
Meet regularly to discuss assigned topics and solve problems together

Explore online tutorials on Weighted Average Cost of Capital (WACC)

Show steps

Complement the course material by seeking out online tutorials that provide additional explanations and examples on calculating WACC, a crucial concept in financial modeling.

Browse courses on Weighted Average Cost of Capital

Show steps

Search for reputable online platforms offering tutorials on WACC
Follow the tutorials, taking notes and practicing the calculations

Four other activities

Expand to see all activities and additional details

Show all seven activities

Solve practice problems on Economic Value Added (EVA)

Show steps

Enhance your problem-solving skills by practicing with a variety of EVA calculation problems. This will help you develop proficiency in applying the concept to real-world scenarios.

Show steps

Gather practice problems from textbooks or online resources
Solve the problems step-by-step, showing your work
Compare your solutions to the provided answer key

Write a blog post summarizing key concepts of Economic Value Added (EVA)

Show steps

By writing a blog post on EVA, you can solidify your understanding of the concept and share your knowledge with a wider audience. This will reinforce your learning and contribute to the broader financial discourse.

Show steps

Research and gather information on EVA from credible sources
Organize your thoughts and structure the blog post outline
Write clear and concise content that explains the key concepts of EVA
Proofread and edit the blog post before publishing

Develop a spreadsheet model to calculate EVA for a company

Show steps

Apply your knowledge of EVA by creating a spreadsheet model that can be used to calculate EVA for any given company. This project will enhance your technical skills and understanding of the practical applications of EVA.

Browse courses on Spreadsheet Modeling

Show steps

Gather the necessary financial data for the company
Design the spreadsheet model using appropriate formulas and functions
Test the model with different scenarios and analyze the results

Contribute to open-source projects related to financial modeling or spreadsheet development

Show steps

Engaging in open-source projects allows you to apply your skills in a practical setting and contribute to the community. This can enhance your technical expertise and expand your network in the field.

Browse courses on Financial Modeling

Show steps

Identify open-source projects related to financial modeling or spreadsheet development
Review the project documentation and code
Make contributions to the project, such as bug fixes or feature enhancements

Career center

Learners who complete Profit Analysis using Economic Value Added will develop knowledge and skills that may be useful to these careers:

Corporate Controller

As a Corporate Controller, you will be responsible for the financial operations of a company. This course will help you develop the skills needed to manage the financial resources of a company and to ensure that it is operating efficiently.

See salaries and explore the career path for Corporate Controller

Chief Financial Officer (CFO)

As a CFO, you will be responsible for the overall financial management of a company. This course will help you develop the skills needed to lead a finance team and to make strategic financial decisions.

See salaries and explore the career path for Chief Financial Officer (CFO)

Equity Research Analyst

As an Equity Research Analyst, you will be responsible for providing research and analysis on companies to investors. This course will help you develop the skills needed to analyze the financial performance of companies and to make recommendations on whether to buy or sell their stocks.

See salaries and explore the career path for Equity Research Analyst

Certified Public Accountant (CPA)

As a CPA, you will be responsible for preparing and auditing financial statements. This course will help you develop the skills needed to understand the principles of financial accounting and to prepare accurate financial statements.

See salaries and explore the career path for Certified Public Accountant (CPA)

Financial Analyst

As a Financial Analyst, you will be responsible for analyzing and interpreting financial data to make investment recommendations. This course will help you build a foundation in the principles of financial analysis, including how to calculate the Weighted Average Cost of Capital, capital invested, finance charge, and NOPAT. This knowledge will be essential for understanding the profitability of potential investments.

See salaries and explore the career path for Financial Analyst

Investment Banker

As an Investment Banker, you will be involved in the process of raising capital for companies and governments. This course will provide you with the skills needed to analyze the financial performance of companies, which is essential for making sound investment decisions.

See salaries and explore the career path for Investment Banker

Portfolio Manager

As a Portfolio Manager, you will be responsible for managing the investments of clients. This course will help you develop the skills needed to analyze the risk and return of different investments, and to construct portfolios that meet the needs of your clients.

See salaries and explore the career path for Portfolio Manager

Risk Manager

As a Risk Manager, you will be responsible for identifying and managing the risks that a company faces. This course will help you develop the skills needed to analyze the financial risks of companies and to develop strategies to mitigate those risks.

See salaries and explore the career path for Risk Manager

Financial Planner

As a Financial Planner, you will be helping individuals and families plan for their financial future. This course will help you develop the skills needed to analyze the financial goals of clients and to develop strategies to achieve those goals.

See salaries and explore the career path for Financial Planner

Credit Analyst

As a Credit Analyst, you will be responsible for assessing the creditworthiness of borrowers. This course will help you develop the skills needed to analyze the financial statements of companies and to make recommendations on whether to extend credit to them.

See salaries and explore the career path for Credit Analyst

Financial Consultant

As a Financial Consultant, you will be providing financial advice to individuals and businesses. This course will help you develop the skills needed to analyze the financial needs of clients and to develop strategies to meet those needs.

See salaries and explore the career path for Financial Consultant

Auditor

As an Auditor, you will be responsible for examining the financial records of companies to ensure that they are accurate and reliable. This course will help you develop the skills needed to understand the principles of auditing and to conduct effective audits.

See salaries and explore the career path for Auditor

Data Analyst

As a Data Analyst, you will be responsible for collecting, analyzing, and interpreting data to help businesses make better decisions. This course will help you develop the skills needed to manage large datasets and to extract meaningful insights from data.

See salaries and explore the career path for Data Analyst

Management Consultant

As a Management Consultant, you will be helping businesses to improve their performance. This course will help you develop the skills needed to analyze business problems and to develop solutions that will help businesses achieve their goals.

See salaries and explore the career path for Management Consultant

Economist

As an Economist, you will be responsible for studying the economy and making recommendations on economic policy. This course will help you develop the skills needed to analyze economic data and to make informed economic decisions.

See salaries and explore the career path for Economist

Reading list

We've selected 11 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Profit Analysis using Economic Value Added.

Expectations Investing

Save

Is the definitive guide to Economic Value Added (EVA), a revolutionary method for measuring the financial performance and creating value in businesses. It provides a comprehensive overview of the EVA framework and its applications.

Expectations Investing

Paperback

Check price

Expectations Investing

Kindle Edition

Check price

The Little Book of Picking Top Stocks

Save

Practical guide to financial statement analysis, providing a comprehensive overview of the techniques and tools used to evaluate the financial health and performance of companies.

Profit Analysis using Economic Value Added

What's inside

Syllabus

Good to know

Save this course

Reviews summary

Profitability analysis with eva

Activities

Career center

Reading list

Share

Similar courses