Episode 57: The Single Metric That Tells the Health of Your Business

In this episode, we discuss the EVA metric which includes the opportunity cost of running your business. Many business owners think that positive net income means that their business is doing well, but is your business creating more value than it’s costing?

EVA = NOPAT – (WACC * capital invested)        

forsook [fawr-sook] verb – the simple past tense of forsake