Economic value added (EVA) as a business management tool

The dynamically developing economic environment forces companies to use a score of indicators to measure their condition and competitiveness. Company value and investment project assessment procedures encompass analyses of standard financial reports, which include balance-sheets, accounts, cash flow reports. New analytical tools and concepts are developed in order to enable better and more precise evaluation of potential profits and business risks. The paper presents an example of applying a compound indicator EVA (Economic Value Added) to evaluate the financial condition of a mining company "Z". The authors synthesized the current knowledge on the value added and its use in Polish companies, and discussed the pros and cons of the method. A calculation example was also presented.