... smaller companies with it's assets liquidated. This also means that it is also a good company to invest in as part of the economic profit would be converted to dividends and distributed amongst shareholders. The values for EVA were taken for two unequal time periods. However, by using ratios, the EVA for the period ending March 2000 is higher than that of the period ending September 1998 when scaled down to a 52 week period, 52 weeks to September 1998 EVA = 483.45 million pounds 78 weeks to March 2000 = 799.8 million pounds ?1 week = 799.8/78 and 52 weeks = 799.8/78 * 52 = 533.2 million pounds This would be the reasoning behind the estimation that there is an increase in EVA over the two consecutive time periods. From the above paragraph, it was said that EVA had to be above total operating profit otherwise the company would be better off broken down into smaller ...

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