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EVA Management

EVA, which is used to measure true profit by factoring in the cost of invested capital, is the Kao Group’s principal management metric. Continuous growth in EVA is linked to increased corporate value, which means long-term profits not only for shareholders, but for all Kao Group stakeholders as well. The Kao Group views EVA growth as a primary focus of operating activity that expands business scale by making the maximum use of assets, and raising asset efficiency. The Kao Group also uses this metric to determine the direction of long-term management strategies, to assess specific businesses, to make evaluations on investment in facilities, acquisitions and other items, and to develop performance targets for each fiscal year.
By remaining conscious of invested capital with EVA, the Kao Group strives to continuously increase corporate value through profitable growth from a long-term perspective.

  • * Economic Value Added
    EVA® is a registered trademark of Stern Stewart & Co.

Improvement and Trends in EVA

We strive to increase corporate value by measuring improvement of EVA from the following four perspectives.

October 1998: Consulting by Stern Stewart & Co. (first client in Japan)
April 1999: Started application of EVA

  • * Stern Stewart & Co.: Developed EVA in theory and applied it to corporate EVA management. Registered EVA as a trademark.
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