Nowe trendy w analizie rentowności
New trends in profitability analysis

Summary/Abstract: The profitability ratios that are used in business practice are inadequate tools of business performance evaluation in terms of enterprise value and value to the shareholders because they do not take into account full costs of rasing capital — only the costs of debt capital are considered. The aim of this article is presentation of profitability measures, with a particular focus on economic value added (EVA) and market value added (MVA). EVA is a measure of company performance, which is calculated by deducting the cost of capital invested by a company from its profit. It is an indicator of real profits, which arise when the cost of capital has been covered, like all other costs. EVA, also called „economic profi t", is a difference between operating profit after tax and cost of capital, both equity capital and borrowing. MVA reflects the excess of the market value of a company over the value of the capital invested. It is calculated as a difference between the capital that investors have invested in a company and the returns they can get upon selling its assets at current market prices. EVA and MVA are the main subject of this article.

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