While calculating EVA we required operating capital.
I want to know whether Secured loans and Unsecured loans are included in operating capital ??
3 Replies
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 08 August 2009
Is there no one on CACLUBINDIA who can reply this query ?
gaurav sharma
(F(utre) Chartered Accountant)
(22 Points)
Replied 30 June 2011
secured loans generally.. long term loans... whereas unsecured loans are nt...
so that only secured loans are included in computing operating capital...
X
(student)
(25 Points)
Replied 01 July 2011
Sorry but I am a lil confused , isnt working capital and operating capital the same?
For calculating EVA don't we calculate it as
net operating profit after tax - capital charge
(capital charge being WACC X net assets)
and other one being
(ROI - Ko ) X net assets/capital investment ?
for WACC/Ko we use both secured and insecured liabilities
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