2008 has certainly been a year to remember… or maybe to forget depending on your point of view. The press continues to be covered by dramatic headlines, which often appear to be based more on scaremongering rather than fact.
It may be time to dust down those old articles about Economic Value Added (EVA), the financial ratio which was meant to be the “silver bullet” for investors, which obviously never proved to be the pinnacle of financial ratio analysis.
EVA entered the investor market with a lot of hype, however this financial ratio may still provide useful insights into a company’s underlying financial position, especially when combined with other market assessments such as Return on Investment.
It will be important for all investors to ensure that we do not forget about the important basics of financial ratio analysis… so stay calm and do your basic research.
Related posts:
