Methodological recommendations for calculating value added. An example of calculating economic value added (EVA). Classic EVA formula

+ indirect taxes

Indirect taxes are added to the price, such as value added tax, excise taxes, customs duties.

Gross value added is the difference between the output of goods and services and intermediate consumption. Output of goods and services - the total value of goods and services resulting from economic activity organizations in the reporting period. Intermediate consumption is the value of goods consumed (excluding consumption of fixed capital) and market services consumed during the reporting period for the production of other goods and services. In accordance with the methodology of the system of national accounts, intermediate consumption includes the following elements: material costs(goods and material services), including raw materials and materials, purchased components and semi-finished products, works and services of a production nature performed by other organizations, fuel, electrical energy, thermal energy; payment for intangible services; travel expenses in terms of paying for travel to the place business trip and back and the cost of renting a dwelling; rent; other elements of intermediate consumption.

Purchased materials and services are purchased off-the-shelf, created by suppliers and contractors, so they are not included in the added value. In this case, all internal costs of the company (for the payment wages, depreciation of fixed capital, etc.), as well as the profit of the organization are included in value added.

Gross value added by type of economic activity is summed up and participates in the calculation of the production method of the country's gross domestic product.

• • • • • • The added value from the point of view of taxation ... is that part, that minimum, which theoretically cannot be hidden from the tax (VAT), everyone can check at their enterprise! And in fact, it is easy to check that the value added tax, payroll tax and all taxes on it are correctly calculated, this is an added value that cannot be compensated, which means the minimum amount of value added tax = (payroll + taxes charged on payroll). This value can be reduced in a specific time interval, but sooner or later this (hidden) amount will have to be paid, i.e. like a snowball, this latent value will grow ...

see also

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See what "Added value" is in other dictionaries:

- (value added) The value added to a product or service as it passes through the chain from the place of its original purchase, production, etc. before retail... For example, if a manufacturer purchases a semi-finished product, the added value ... Financial vocabulary

added value- Price finished products firms (companies) minus the cost of raw materials, materials, semi-finished products and other resources purchased from other companies and used for its manufacture. D.S. applies as a tax base for one of ... ... Technical translator's guide

- (value added) The value added to a product as it passes through the chain from where it was originally purchased, produced, etc. before retail. For example, if a manufacturer purchases a semi-finished product, the added value will be ... ... Business glossary

Added value- (value added by processing) 1. In the system of national accounting (see National accounts), the difference between the value of goods and services produced and the value of goods and services that were used in the production process (t ... Economics and Mathematics Dictionary

Modern encyclopedia

Added value- (English additional cost) value added during the production of goods; includes salary with deductions for social insurance, depreciation, profit ... Encyclopedia of Law

Added value- (value added by processing), the value of the product sold minus the value of the products (materials) purchased and used for its production; equal to revenue, including wages, rent, rent, bank interest, ... ... Illustrated Encyclopedic Dictionary

See Value Added Business Glossary. Academic.ru. 2001 ... Business glossary

- (value added) Total sales of the firm minus purchases of resources from other firms. The remainder is intended for the salaries of the employees of the firm and the payment of profits to its owners. National income is the sum of the added value of all enterprises in the economy ... ... Economic Dictionary

Added value- the difference between the price of goods on an ex-factory basis and the cost of imported raw materials and materials used for its production; ... Source: Agreement between the Government of the Russian Federation, the Government of the Republic of Belarus and the Government of the Republic ... ... Official terminology

The difference between the cost of the product sold by the organization (services rendered) and the materials spent on its production; equal to revenue. Includes the equivalent of labor costs, interest on capital, rent and profit. This indicator ... ... Legal Dictionary

Books

• National interests: priorities and security № 14 (203) 2013, The journal highlights topical issues of national interests, priority areas of economic development, issues national security Russia and regions in various spheres of the economy, ... Category: Politics, Political Science Series: Journal "National Interests: Priorities and Security" 2013 Publisher: FINANCE & CREDIT, eBook (fb2, fb3, epub, mobi, pdf, html, pdb, lit, doc, rtf, txt)
• How to Use Value Added Data Analysis to Improve Student Learning, Kennedy Keith, Mary Peters, Thomas Mike, The book is devoted to the explanation, ways of applying and interpreting the technology of performance assessment as educational institutions (regional and municipal governments ... Category: Education administration Series: Library of the journal "Education Issues" Publisher:

In practice, EVA is calculated as follows:

Developing formula (1), you can show the calculation of the EVA indicator as follows:

EVA = (P - T) - IC * WACC = NP - IC * WACC = (NP / IC - WACC) * IC (2)

P is profit from ordinary activities;

T- taxes and other mandatory payments;

IC - capital invested in the company;

WACC is the weighted average price of capital;

NP is net profit.

EVA = (NP / IC - WACC) * IC = (ROI - WACC) * IC (3)

ROI is the return on capital invested in an enterprise.

From formula (3) it follows that an important role in calculating the EVA indicator is played by the structure of sources financial resources enterprises and the price of sources. EVA allows you to answer the question of the company's investors: what type of financing (own or borrowed) and what amount of capital is required to obtain a certain value of profit. On the other hand, EVA determines the line of behavior of the owners of the enterprise, directing the capital of investors to the enterprise or vice versa, facilitating their outflow to enterprises that allow for higher rates of profitability.

In formulas 1-3, to determine the EVA indicator, you need to know the weighted average price of capital WACC. The weighted average capital price can be calculated using the following formula:

WACC = PZK * dZK + PSC * dSK (4)

PZK - the price of borrowed capital;

dЗК - the share of borrowed capital in the capital structure;

PSC - the price of equity capital;

dSC - the share of equity in the capital structure.

The essence of EVA is manifested in the fact that this indicator reflects the addition of value to the market value of the enterprise and the assessment of the efficiency of the enterprise through determining how this enterprise is valued by the market.

In accordance with formula (5), the market value of the enterprise may exceed or be less than the book value of net assets, depending on the future profits of the enterprise. The EVA value determines the behavior of the owners of the enterprise in relation to investing in the given enterprise.

Consider the following three options for the relationship between the EVA value and the behavior of the owners:

1. EVA = 0, i.e. WACC = ROI and the market value of the enterprise is equal to the book value of net assets. In this case, the owner's market gain when investing in a given enterprise is equal to zero, so he wins equally by continuing operations in this enterprise or investing in bank deposits.

2. EVA> 0 means an increase in the market value of the company over the book value of net assets, which stimulates the owners to further invest in the company.

3. EVA< 0 ведет к уменьшению рыночной стоимости предприятия. В этом случае собственники теряют вложенный в предприятие капитал за счёт потери альтернативной доходности.

From the relationship between the market value of the enterprise and the values ​​of EVA, it follows that the enterprise must plan future values ​​of EVA to guide the actions of owners to invest their funds.

Expectation of future EVA values ​​has a significant impact on the growth of the company's share price. If the expectations are conflicting, the stock price will fluctuate, and in the short term it will not be possible to draw a clear relationship between the EVA values ​​and the company's stock price. Therefore, the task of planning profit, and with it planning the structure and price of capital, is the primary task of enterprise management. The more professional the management of the company is, the higher the EVA value and the planning accuracy, all other things being equal. This explains the fact that in large Western enterprises, EVA values ​​are the basis of premiums for managers who become more interested in the growth of enterprise profitability and the growth of EVA. In this regard, EVA acts as the basis of motivation. Economic added value. Elena Larionova, consultant for financial analysis and planning CG "Voronov and Maksimov", teacher of the Faculty of Economics, St. Petersburg State University http://www.bupr.ru/articles_id_2.htm [Economic value added. Elena Larionova, financial analysis and planning consultant, Voronov and Maksimov CG, lecturer at the Faculty of Economics, St. Petersburg State University http://www.bupr.ru/articles_id_2.htm].

Based on subparagraph 6.1 of paragraph 6 of the Regulations on the Ministry of Economy of the Republic of Belarus, approved by the Resolution of the Council of Ministers of the Republic of Belarus of July 29, 2006 N 967 "Certain Issues of the Ministry of Economy of the Republic of Belarus", subparagraph 7.1 of paragraph 7 of the Regulations on the Ministry of Labor and social protection Of the Republic of Belarus, approved by the resolution of the Council of Ministers of the Republic of Belarus of October 31, 2001 N 1589 "Issues of the Ministry of Labor and Social Protection", the Ministry of Economy of the Republic of Belarus and the Ministry of Labor and Social Protection of the Republic of Belarus DECIDE:

2. This resolution comes into force after its signing.

Minister of Economy of the Republic of Belarus N.G. Snopkov

Minister of Labor and Social Protection

Of the Republic of Belarus M.A. Shchetkina

APPROVED Resolution of the Ministry of Economy of the Republic of Belarus and the Ministry of Labor and Social Protection of the Republic of Belarus on May 31, 2012 N 48/71

CHAPTER 1 GENERAL PROVISIONS

1. Guidelines for calculating value added and value added per average employee (labor productivity at value added) at the organization level (hereinafter referred to as the Guidelines) are intended to guide the work of republican government bodies and other state organizations subordinate to the Government of the Republic of Belarus, regional executive committees and the Minsk city executive committee.

2. The methodological recommendations apply to organizations subordinate (under) the republican government bodies and other state organizations subordinate to the Government of the Republic of Belarus, regional executive committees and the Minsk City Executive Committee, as well as to business companies, shares (shares in statutory funds) of which are in state ownership.

CHAPTER 2 CALCULATION OF VALUE ADDED AT ORGANIZATION LEVEL

3. Added value at the level of an organization is that part of the value of products (works, services) that is created in a given organization. Added value is a source of economic growth and the formation of income for the owners of the organization, employees, and the state.

4. The economic effect of maximizing the added value of the organization is expressed in the realization of interests:

owners - in ensuring the ability to solve managerial problems of the organization's development, including supply, sale of manufactured products (works, services) and receiving dividends, interest, income;

investors - in the return on investment and its profitability over time;

workers - in the opportunity to receive decent wages;

the state - in the fulfillment by organizations of obligations to pay taxes to the republican and local budgets, which allows the latter to solve social and environmental problems of society.

The added value, in contrast to the profit indicator, harmonizes the interests of not only the corporate, but also the state ones, since it takes into account the requirements of the legislation on ensuring social and environmental guarantees.

5. The value added for the organization is calculated for all types of economic activities carried out as follows:

the volume of production of products (works, services) in selling prices minus the accrued taxes and fees from the proceeds minus material costs (excluding payments for Natural resources) and other expenses consisting of rent, entertainment expenses and services of other organizations.

DS = V - MZ - PrZ,

where DS is the added value for the organization;

V is the volume of production of products (works, services) in selling prices, net of accrued taxes and fees from the proceeds;

МЗ - material costs minus payments for natural resources;

PRZ - other costs consisting of rent, entertainment expenses and services of other organizations.

6. The formation of indicators of the volume of production of products (works, services) and the costs of their production is carried out on the basis of synthetic and analytical data. accounting in accordance with regulatory legal acts accounting.

CHAPTER 3 CALCULATION AND ANALYSIS OF LABOR PRODUCTIVITY AT THE LEVEL OF THE ORGANIZATION

7. Labor productivity at the organization level is calculated in actual prices as the ratio of value added, calculated in accordance with paragraph 5 of these Methodological Recommendations for reporting period, to the average number of employees of the organization for the same period.

8. The growth rate of labor productivity at the organization level is calculated in actual prices as the ratio of labor productivity at the organization level in actual prices for the reporting period to labor productivity at the organization level in actual prices for the corresponding period of the previous year.

9. The ratio of the dynamics of labor productivity at the level of the organization and the wages of employees of the organization is calculated as the ratio of the growth rate of labor productivity at the level of the organization in actual prices and the nominal accrued average monthly wages.

With the value of the ratio of the growth rates of labor productivity at the level of the organization in actual prices and the nominal accrued average monthly wages more than one, consider that there is an outstripping growth in labor productivity.

10. The calculation of labor productivity and its analysis with linking the wages of workers to agricultural organizations, taking into account the specifics of agricultural production, is advisable to carry out at the end of the year.

Economic Value Added, EVA is economic value added. The indicator answers the questions, which additional income creates a company with invested capital, whether the owners will receive a profit. You can use data from the standard balance sheet and income statement to calculate EVA. Details are in the article.

What is EVA

The concept of Economic Value Added (EVA) was developed in the late 1980s by Joel Stern and Bennett Stewart.

EVA is the difference between a company's profit and the cost of the capital it uses. Sounds simple. But if you follow the position of the authors, then to calculate the EVA, about 160 adjustments to the profit value will be required. In practice, it is easier to assess the value of the indicator.

Classic EVA formula

The EVA calculation according to the classic formula proposed by Stewart and Stern looks like this:

EVA = NOPAT - WACC × CE,

where NOPAT (Net Operating Profit After Tax) is post-tax operating profit excluding accrued interest on loans and borrowings received, rubles. When calculating it, all income and expenses of the enterprise reflected in the income statement, including income tax, are taken into account. To determine NOPAT, interest must be added to the net profit of the reporting period.

CE (Capital Employed) - invested (invested) capital, rubles .;

WACC (Weighted Average Cost of Capital) - weighted average cost of capital,% per year, which is calculated by the formula:

WACC = r LC × LC: CE + r OC × OC: CE,

where r LC is the average cost of borrowed capital,% per year;

LC (Loan Capital) - borrowed capital or capital received in the form of debt obligations, rubles;

OC (Own Capital) - equity capital invested by the founders in the company, rubles;

r OC - cost of equity,% per year. It is determined by the shareholders and shows the minimum level of profitability that they expect to receive on the invested funds.

Formula for calculating EVA based on accounting data

The EVA formula can be converted to a more convenient form for calculations based on accounting data:

EVA = Net Income - r OC × OC.

Further a matter of technology. The value of net profit is taken from the income statement (page 190), equity - from the balance sheet (page 490, the value at the beginning of the period). It remains to decide on the cost of equity (rOC). (See also roe return on equity.) In practice, it is most often equated to the profitability that the owner wants to see. If a specific figure is not named, you can use the formula:

r OC = r wr × β,

where r wr is the average rate of low and risk-free investments (for example, the rate on deposits in highly reliable banks),% per annum;

β - additional payment for risk when investing capital in a particular company (in% per annum) required by the investor.

The amount of the risk payment is individual for each enterprise and is determined by the shareholders. Naturally, in accounting statements such data are not available. If the founders have not voiced their wishes - how much extra they want to receive for their risks, then as an assessment of this indicator, you can use:

• if it was determined at the stage of the decision to open an enterprise;
• average market return on equity for enterprises in this industry.

What adjustments to take into account when calculating economic value added

Before proceeding with the calculation of economic value added, it is necessary to adjust the financial statements - to bring profit and invested capital, calculated according to accounting standards, to real monetary values. Read on how to correctly calculate EVA by making the necessary adjustments to the company's financial statements.

Step-by-step algorithm for calculating EVA by balance

I will show you step by step how to calculate it according to the financial statements, using the example of the conditional company "Delta Co".

Step 1. Bring balance and other reporting to a convenient form

• balance sheet (No. 1);
• reports on financial results(No. 2) and capital changes;
• explanations for the reports that will be required to calculate the EVA.

Bring accounting forms No. 1 and No. 2 to a unified form. The main table frame was developed by McKinsey, and I tweaked it to calculate EVA according to RAS.

To correctly convert the balance sheet, copy the values ​​of the articles "Initial cost of fixed assets", "Initial cost of intangible assets", "Goodwill" and depreciation data from the explanations to the financial statements. The balance sheet currency will remain the same as in the standard report (see Table 1). Similarly with the balance sheet, transform the statement of financial results (see table. 2).

Table 1... Converted balance sheet, thousand rubles (fragment)

table 2... Converted statement of financial results, thousand rubles (fragment)

Indicate the cost price, selling and administrative expenses in the form without depreciation, we will single it out as a separate indicator. Take the values ​​from the explanations to the accounting statements. “Retained earnings” and “Dividends” can be found in the statement of changes in equity.

Step 2. Calculate net operating income

The basis for calculating EVA is net operating income after taxes (NOPAT). Subsequently, we subtract from it the product of the invested capital and its value.

Take the converted income statement. Calculate net operating income using the formula:

NOPAT = EBIT - H + Rel (2)

where , rub.;

EBIT (Earnings before interest and taxes) - profit before taxes and interests, rubles;

Н - adjusted income tax, rubles;

Rel - change in deferred tax liabilities and assets, rubles.

To find profit before taxes and interest, use the formula:

EBIT = В - С - КиУ - А (3)

where EBIT is profit before taxes and interest, rubles;

В - revenue, rubles;

С - prime cost without depreciation, rubles;

КиУ - commercial and administrative expenses without depreciation, rubles;

A - depreciation, rub.

Calculation example

For Delta & Co, profit before taxes and interest in 2015 amounted to 83 858 thousand rubles (291 287 - 121 207 - 48 160 - 37 599 - 463). We count the rest of the years by analogy. In the base for adjusting income tax, we will include interest payments and income, as well as items that are not related to the main activity:

• income tax reserve (line 2410 + line 2430 - line 2450 + line 2460);
• tax protection on interest payable (line 2330 × 20% tax rate);
• Interest income tax (line 2320 × 20% tax rate);
• tax on profits from non-core activities, if any.

Adjusted tax in 2015 is 13 347 thousand rubles (10 726 thousand rubles + 893 thousand rubles - 130 thousand rubles + 11 thousand rubles + 14 414 thousand rubles × 0.2 - 5181 thousand RUB × 0.2 + 0). 2014 and 2015 can be calculated similarly.

The change deferred taxes for the current and last year, find according to the balance sheet data for 2015 and 2014: the difference between IT and IT in 2015 (p. 1420 - p. 1180) minus the difference between IT and IT in 2014. In the example, the deferred tax is equal to 1145 thousand rubles ((15 070 - 1354) - (14 046 - 1475)). Determine the indicators for 2014 and 2013 in the same way.

We have all the metrics to find the net operating income. Substitute the found values ​​into the formula for net operating profit after taxes for the company for 2015 and we get 71 656 thousand rubles (83 858 - 13 347 + 1145).

Step 3. Find the invested capital

Let's calculate the amount invested in the main activity. Do not include income from non-core assets. We use the formula:

IC = CHOB + CHOS + Pr (4)

where IC is the invested capital in the main activity, rubles;

CHOB - net working capital (line 1200 - line 1240 - (line 1521 + line 1522 + line 1523 + line 1524)), rubles;

CHOS - net fixed assets - residual value of fixed assets and intangible assets (line 1150 + line 1110 + line 1120), rubles;

Ex - other operating assets and liabilities (line 1190 - line 1450 - line 1550 - line 1430 - line 1540), rub.

Let's calculate the net working capital:

CHOB = OA - KFV - (KZ + Zn) (5)

where CHOB - net working capital, rubles;

OA - current assets(p. 1200), rubles;

KFV - short-term financial investments (line 1240), rubles;

KZ - accounts payable (line 1521 + line 1522), rubles;

Зн - tax and contribution arrears (line 1523 + line 1524), rub.

Calculation example

Invested capital at the beginning of 2015:

CHOB = 99 667 - 55 160 - (25 621 + 3597 + 5936 + 986) = 8367 thousand rubles.

CHOS = 200 964 + 342 = 201 306 thousand rubles.

Pr = 34 176 - 2303 - 14 631 - 4958 - 7372 = 4912 thousand rubles.

IC = 8367 + 201 306 + 4912 = 214 585 thousand rubles.

Step 4. Estimate the return on invested capital

To calculate the EVA from the balance, let's calculate what kind of return the company receives from the invested money. To do this, we find the ratio of net operating income after taxes to capital:

ROIC = NOPAT: IC × 100% (6)

where ROIC (Return on invested capital) is the return on invested capital,%;

NOPAT - net operating profit after taxes, rubles;

IC - invested capital at the beginning of the year, rubles.

Calculation example

For Delta & Co, the return on invested capital for 2015 is 33.393 percent (71 656 thousand rubles: 214 585 thousand rubles × 100%).

Specify the ROIC value to hundredths, otherwise there will be a noticeable difference in subsequent calculations.

Step 5. Determine the economic value added of EVA

To determine economic value added, we lack the weighted average cost of capital:

WACC = Ks × Ws + Kd × Wd × (1 - T) (7)

where WACC (Weight average cost of capital) is the weighted average cost of capital,%;

Ks is the cost of equity,%;

Ws - share of equity capital, units;

Kd - cost of borrowed capital,%;

Wd - share of borrowed capital, units;

T - income tax rate, units.

For Delta Ko we take the return on assets as the cost of equity. The tax rate is 20 percent. Substituting the values ​​into formula (8) and we get that the WACC is 11.68 percent (10.2% × 0.35 + 15.6% × 0.65 × (1 - 0.2)).

Let's use an alternative formula for calculating economic value added:

EVA = IC × (ROIC - WACC): 100% (8)

where EVA is economic value added, rubles;

IC - invested capital, rubles;

ROIC - return on invested capital,%;

WACC - weighted average cost of capital,%.

An example of calculating EVA by balance

From here, the company created an economic added value for its shareholders in 2015 of 46,592.5 thousand rubles (214,585 thousand rubles × (33.393% - 11.68%): 100%).

Let's double-check the correctness of the calculation of the indicator according to formula 1. The added value of the company is equal to 46,592.5 thousand rubles (71,656 - 214,585 × 11.68: 100). The numbers converge.

If the company supports the added economic value at the level of 46 thousand rubles or it will be able to increase it, the business has good prospects for further development.

Table 3... Weighted average cost of capital

Three ways to boost your EVA

1. Increase operating profit while spending on capital.
2. Additionally invest in projects whose profitability is higher than the cost of raising money.
3. Free up capital. If a company has invested money in an activity or property, the income from which does not cover capital costs, it can realize this resource and receive funds.

With the help of the FinEkAnalysis 2019 program, you can quickly conduct Assessment of economic value added.

An example of a report automatically generated by the FinEkAnaliz 2019 program.

Assessment of economic value added
CJSC "Arsenal" as of 01.01.2010

Economic value added is a measurement method financial condition company, which calculates real economic income. EVA can be calculated as the difference between net operating income after tax and the opportunity cost of capital invested.

The main idea and meaning of the EVA indicator is that the company's capital must work with such efficiency in order to provide the rate of return required by the investor, shareholder or other owner on the capital invested.

Economic value added is calculated using the formula:

EVA = NOPAT - WACC x CE

where NOPAT is the net profit according to the financial statements, taking into account the necessary adjustments;

WACC is the weighted average cost of capital;

CE - Invested Capital.

Economic added value arises in a company if, over a given period of time, it has been possible to earn a return on invested capital that is higher than the investor's rate of return.

A positive EVA value means an increase in market value compared to the book value of net assets and an incentive for owners to make further investments in the company. The negative one leads to a decrease in the market value of the company and the loss of the invested capital by the owners due to the non-receipt of alternative profitability. If the EVA is zero, the market value of the enterprise and the book value of net assets coincide, which means that the owner's market gain is zero.

It is advisable to calculate EVA in 3 stages:

1) determination of the weighted average cost of capital;

2) making amendments with the indicator of profit and capital;

3) determination of the return on invested capital, the yield spread and economic value added.

The weighted average cost of capital of CJSC "Arsenal" is 3.99% (see the section "Calculating the weighted average cost of capital")

Balance sheet amendments are made to convert NOPAT and CAPITAL from the book value to the economic book value. In the Russian context, it is advisable to use a financial perspective approach to calculate NOPAT.

NOPAT calculation

The peculiarities of the accounting policy of the enterprise made it possible to make amendments when calculating the economic profit by the amount of: costs associated with financing and interest income, investment loss. In this regard, the economic profit exceeded the accounting one by 7723.3 thousand rubles.

When calculating the CAPITAL indicator, the approach with an operational perspective seems to be the least laborious.

Calculation of CAPITAL

In 2009, the amendments made when converting the balance sheet value of the "capital" indicator into the economic value increased its level by 578 thousand rubles.

EVA score calculation - menagment

In 2009, the CJSC "Arsenal" enterprise earned a profitability exceeding the one required by the investor by 20.91%. The increase in the market value of the enterprise over the book value of assets amounted to 24,791 thousand rubles. This stimulates the owner to further invest in the company.