This PPT slide, part of the 35-slide Supercharge Strategy Execution: Performance Scorecard PowerPoint presentation, presents key financial metrics aimed at enhancing shareholder returns and creating economic value. It is structured into two main objectives: "Improve shareholder returns" and "Create economic value." Each objective is accompanied by specific metrics, descriptions, and calculations, providing a clear framework for assessing financial performance.

For the first objective, "Improve shareholder returns," two metrics are highlighted. The "Return on Equity" (ROE) reflects the profitability generated from shareholders' investments. It is calculated by dividing net income by shareholders' equity. This metric is crucial for understanding how effectively a company utilizes equity to generate profits. The second metric, "Earnings per Share" (EPS), measures the net income attributable to each share of stock. The calculation involves deducting preferred dividends from net income and dividing by the weighted average number of common shares outstanding. EPS serves as a direct indicator of profitability on a per-share basis, which is vital for investors.

The second objective focuses on "Create economic value," with the "Economic Value Added" (EVA) metric. EVA estimates a firm's economic profit, defined as the value created beyond the required return on its investments. The calculation involves net operating profit after taxes, adjusted for the capital cost. This metric provides insight into whether a company is generating sufficient returns to justify its capital expenditures.

Overall, this slide serves as a concise reference for executives looking to evaluate financial performance through specific, quantifiable metrics. It emphasizes the importance of both shareholder returns and economic value in driving business success.

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Performance Management Balanced Scorecard KPI Strategy Deployment & Execution