Company performance and measures of value added

To success in changing business environment, every business executive needs to systematically evaluate the performance of a company as well as foresee future trends taking into account all relevant facts. He can use wide portfolio of available traditional methods and indicators, used in financial analysis, however, he needs to be open to new management approaches in this area. For long-term successful existence of the company, it is necessary that the company is able to generate the economic profit and value not only for owners but also for all the business stakeholders. The emerging value-based approaches overcome issues related to traditionally used methods, as the attention is shifted to economic profit that reflects implicit costs of equity capital. Thus, the methods look at the business performance from shareholder’s point of view. Moreover, there is the empirical evidence, that the creation of shareholder’s value is the condition for creation of wealth for all related stakeholders.