KS EVA
Shelly Deviana Hakim (29113362)
YP 50 B
Economic Value Added of PT. Krakatau Steel (2014)
EVA is an internal management performance measure that compares net operating profit to total cost of capital. Economic Value Added attetmps to capture the true economic profit of a company. If EVA is more than zero (EVA>0) which is means value creating or inversly (EVA<0) means that is value destroying. Calculation EVA of PT. Krakatau Steel for 2014 start below.
1. Define the WACC
Item
Book Value
% to MV
Cost of Cap
After tax CofC
Cont. to WACC
Short Term Debt
1,092,565.00
48.62%
9.22%
6.45%
3.139%
Long Term Debt
262,509.00
11.68%
9.35%
6.55%
0.765%
Equity
891,868.00
39.69%
10.78%
10.78%
4.277%
2,246,942.00
100.00%
29.35%
Tax
30 %
WACC
8.18 %
2. Define the WCR (Working Capital Requirement)
Item
2013
2014
Working Capital Requirement
+Inventory
519,086.00
480,871.00
+Receivables
333,159.00
279,990.00
+Operating Cash (assumed 30% of Cash B/S)
57,069.60
71,006.70
+Prepaid Expenses
35,515.00
33,529.00
-Account Payable
(179,899.00)
(202,883.00)
-Accrued Expenses
(24,200.00)
(33,809.00)
-Advances from Customers
(31,175.00)
(23,306.00)
-Long Term Debt
(60,573.00)
(55,417.00)
Total Working Capital Requirement
648,982.60
549,981.70
Net WCR / Sales
Excess Cash
+Cash on B/S
190,232.00
236,689.00
-Operating Cash
57,069.60
71,006.70
Excess Cash
133,162.40
165,682.30
Total Working Capital Requirement
648,982.60
549,981.70
Fixed Assets
857,738.00
1,097,410.00
Other Fixed Assets
78,670.00
92,072.00
Total Invested Capital
1,585,390.60
1,739,463.70
Fixed Asset Growth
10%
Depreciation
Capital Expenditure
-
-
3. Calculate the EVA
1. Calculate the Net Operating Profit After Tax
NOPAT
2013
2014
Operating profit (1,067.00) (70,444.00)
Interest income 6,294.00 4,886.00
- income tax (1,147.00) (25,961.00)
- tax shield on interest (13,695.60) (15,441.00)
NOPAT
(9,615.60) (106,960.00)
2. Calculate the
YP 50 B
Economic Value Added of PT. Krakatau Steel (2014)
EVA is an internal management performance measure that compares net operating profit to total cost of capital. Economic Value Added attetmps to capture the true economic profit of a company. If EVA is more than zero (EVA>0) which is means value creating or inversly (EVA<0) means that is value destroying. Calculation EVA of PT. Krakatau Steel for 2014 start below.
1. Define the WACC
Item
Book Value
% to MV
Cost of Cap
After tax CofC
Cont. to WACC
Short Term Debt
1,092,565.00
48.62%
9.22%
6.45%
3.139%
Long Term Debt
262,509.00
11.68%
9.35%
6.55%
0.765%
Equity
891,868.00
39.69%
10.78%
10.78%
4.277%
2,246,942.00
100.00%
29.35%
Tax
30 %
WACC
8.18 %
2. Define the WCR (Working Capital Requirement)
Item
2013
2014
Working Capital Requirement
+Inventory
519,086.00
480,871.00
+Receivables
333,159.00
279,990.00
+Operating Cash (assumed 30% of Cash B/S)
57,069.60
71,006.70
+Prepaid Expenses
35,515.00
33,529.00
-Account Payable
(179,899.00)
(202,883.00)
-Accrued Expenses
(24,200.00)
(33,809.00)
-Advances from Customers
(31,175.00)
(23,306.00)
-Long Term Debt
(60,573.00)
(55,417.00)
Total Working Capital Requirement
648,982.60
549,981.70
Net WCR / Sales
Excess Cash
+Cash on B/S
190,232.00
236,689.00
-Operating Cash
57,069.60
71,006.70
Excess Cash
133,162.40
165,682.30
Total Working Capital Requirement
648,982.60
549,981.70
Fixed Assets
857,738.00
1,097,410.00
Other Fixed Assets
78,670.00
92,072.00
Total Invested Capital
1,585,390.60
1,739,463.70
Fixed Asset Growth
10%
Depreciation
Capital Expenditure
-
-
3. Calculate the EVA
1. Calculate the Net Operating Profit After Tax
NOPAT
2013
2014
Operating profit (1,067.00) (70,444.00)
Interest income 6,294.00 4,886.00
- income tax (1,147.00) (25,961.00)
- tax shield on interest (13,695.60) (15,441.00)
NOPAT
(9,615.60) (106,960.00)
2. Calculate the