In this article we will discuss about:- 1. Meaning of VBM 2. Methods of VBM 3. Benefits and Limitations. Meaning of VBM: VBM is the management approach that ensures corporations are run consistently on value, normally maximizing shareholders value. VBM aims to provide consistency of the firm's strategy, mission, governance, culture, communication, organization of the corporation, decision processes, reward processes [...]
SVA is an approach to Financial management developed in 1980s, which focuses on the creation of economic value for shareholders, as measured by share price performance and flow of funds. SVA is used as a way of linking management strategy and decisions to the creation of value for shareholders. The investment, business and financial decisions, both strategic and operational, are [...]
In this article we will discuss about interest cover and income gearing in a company. Interest Cover: This ratio is calculated to analyse the company's ability to meet interest obligations. It is expressed as number of times interest earned. It is measured as a ratio of profit before interest and tax to interest charges. The more the number of times [...]