FinancialAnaly

jdane416, that's not accurate.

EVA (aka Economic Profit) measures the return above and beyond what is required by both debt and equity holders. It does not measure the "return to all shareholders". That would be a claims valuation-type of approach. The present value of EVA is MVA, Market Value Added. It's the value that management adds above what is required by both debt and equityholders.

RI, on the other hand, measures the amount leftover after equity holders have had their share. Implicit in the NI is also the fact that debtholders have had their share as well.

So, it's pretty much the same.