Use of the Concept of "Economic Value Added" to Evaluate the Performance of an Organization

This article discusses various aspects of managing profit at companies by using a new method based on economic value added, which is a concept that is widely used by Western firms. The feasibility of using this method to evaluate the performance of Russian companies is explored. The method makes it possible to determine how efficiently capital is being used in a company compared to alternative types of investment. The performance of one organization in particular is assessed on the basis of the economic-value-added index and a predictive analysis is made. Studies have shown that the use of this index in accounting operations makes it possible to more accurately evaluate the performance of Russian companies.