© 2020 Published by VŠB-TU Os a a. All igh s ese ed. ER-CEREI, Volume 23: 17–30 (2020).
ISSN 1212-3951 (P in ), 1805-9481 (Online) doi: 10.7327/ce ei.2020.03.02
E alua ion o sec o s’ pe o mance acco ding
o EVA: The case o he Czech Republic
Dagma RICHTAROVÁa
*
, Ba bo a PTÁČKOVÁb, Ma ina BOROVCOVÁc
a, b, c Depa men o Finance, Facul y o Economics, VSB – Technical Uni e si y o Os a a, Sokolská řída 33, 702 00 Os-
a a, Czech Republic.
Abs ac
This pape is dedica ed o a inancial pe o mance analysis. I s aim is o analyse he inancial pe o mance o sec o s
o he Czech economy using economic alue added (EVA) and, based on he esul s, o p opose a py amidal de-
composi ion o quan i y he indica o s a ec ing EVA. The analysis conside s he pe iod om 2012 o 2019. Based
on ou indings, we iden i y he main di isions in luencing he manu ac u ing sec o and, espec i ely, he Czech
economy. Fi s , EVA is used o e alua e he inancial pe o mance o sec o s o he Czech economy. The sec o s
a e so ed acco ding o he mean alue o EVA. F om ou p e ious esea ch, i is known ha he manu ac u ing
sec o is he main d i ing o ce o he Czech economy. Then, he me hod o py amidal decomposi ion is applied
and he main componen indica o s a ec ing he EVA o he manu ac u ing sec o a e dis inguished. The in eg al
me hod is used o quan i y he in luence o he componen indica o s on EVA.
Keywo ds
Economic alue added, inancial pe o mance, py amidal decomposi ion
JEL classi ica ion: G30, G32
*
[email p o ec ed] (co esponding au ho )
This pape was suppo ed by he SGS P ojec VŠB – TU Os a a SP2020/124 Finanční modelo ání a ozhodo ání podniků a
inančních ins i ucí za izika, lexibili y a in e akce.
Ekonomická e ue – Cen al Eu opean Re iew o Economic Issues 23, 2020
18
E alua ion o sec o s’ pe o mance acco ding
o EVA: The case o he Czech Republic
Dagma RICHTAROVÁ, Ba bo a PTÁČKOVÁ, Ma ina BOROVCOVÁ
1. In oduc ion
The e alua ion o inancial pe o mance belongs o he
key ac i i ies o each company while e alua ing i s cu -
en s a e and compa ing i wi h i s inancial and s a e-
gic goals. A company’s inancial pe o mance is a an-
dom p ocess ha can be di ided in o indi idual indica-
o s. I can also be e alua ed using accoun ing, eco-
nomic o ma ke indica o s.
In he pas , adi ional indica o s, such as p o i abil-
i y a ios, we e used o analyse inancial pe o mance.
These indica o s a e based on accoun ing in o ma ion
(see Dluhošo á, 2010; Mařík, 2005; Ve nimmen,
2005). Financial indica o s a e commonly used in co -
po a e pe o mance analysis, bu hey can ha dly be
used as a complex measu emen ool. One o hei big-
ges p oblems is dimensional e alua ion. I is no pos-
sible o show a p ope pic u e o he co po a e pe o -
mance o he managemen and sha eholde s o a com-
pany based on inancial indica o s (Abdoli e al., 2011).
Acco ding o o he esea che s, such as Ed insson
(1997), Eh ba (1998) and S eiby (2001), adi ional
measu es o co po a e pe o mance based on he ac-
coun ing p inciples o de e mining income may be un-
sui able o he new economic wo ld, whe e compe i-
i e ad an ages a e d i en by in ellec ual capi al. The
use o adi ional measu es may lead in es o s and
o he s akeholde s o make p oblema ic decisions when
alloca ing hei esou ces (Fi e and Williams, 2003).
Because o he inc easing p essu e on companies
o deli e alue o hei sha eholde s, he e has been e-
newed emphasis on de ising measu es o co po a e i-
nancial pe o mance. The empi ical li e a u e o da e
has sugges ed ha he e is no single accoun ing-based
measu e upon which changes in sha eholde weal h can
be eliably explained (see Chen and Dodd, 1997; Rog-
e son, 1997).
The accoun ing p o i measu es, such as ea nings
pe sha e, e u n on equi y, e u n on asse s o e u n on
in es men , a e among he mos commonly used pe -
o mance measu es, bu hey a e o en c i icized o no
aking he o al cos o he capi al in o accoun and o
being in luenced by he accoun ing con en ions (Chen
and Dodd, 1997).
Many s udies ha e sough an answe o he ques ion
o how a company’s inancial pe o mance should be
e alua ed. In he pas , a ious au ho s used accoun ing
measu es o a company’s inancial pe o mance, such
as ROE (Pa elko á, 2009; Rich a o á, 2010; S nado á
and Ka as, 2014).
In con as o accoun ing indica o s, mode n indica-
o s, such as economic alue added, ha e been p o-
mo ed as a measu e o a company’s eal p o i abili y.
Economic alue added is he only pe o mance meas-
u e ha is di ec ly ela ed o he in insic alue o s ock.
Fo empi ical es ing, see Biddle, Bowen and Wallace
(1997), Chen and Dodd (1997) o Roge son (1997).
Economic alue added is p esen ed as a new echnol-
ogy o managemen ha helps companies o enhance
hei sha eholde alue c ea ion (see Copeland, 1994;
Eh ba , 1998; Rappapo , 1986).
Nowadays, many esea che s use mode n indica o s
o analyse companies’ inancial pe o mance (see
Dluhošo á, 2004; Mařík, 2005). The mos widely used
mode n indica o , economic alue added, is based on
he concep o economic p o i . The e olu ion o eco-
nomic p o i has his o ical oo s. Fo ins ance, Ma shall
de ined economic p o i in 1890. Based on Ma shall’s
s a emen , economic p o i is adically di e en om
he accoun ing measu es o p o i in use oday, such as
EBIT o ne ope a ing income (G an , 2003). When he
economic p o i is posi i e, i means ha he company
ea ns mo e han he weigh ed a e age cos o he capi-
al, which also means ha some weal h is c ea ed o
he sha eholde s.
Acco ding o G an (2003), he heo y o economic
alue added es s on wo p inciples. A company is no
p o i able unless i ea ns a e u n on he in es ed capi al
ha exceeds he oppo uni y cos o he capi al, and
weal h is c ea ed when he company managemen
makes a posi i e NPV in es men decision o he
sha eholde s.
On he o he hand, acco ding o hese s udies, he
inancial pe o mance o a company is analysed gene -
ally. I is e y impo an o iden i y he main in luenc-
ing ac o s and o quan i y he impac o he componen
indica o s. Tha is why i is app op ia e o apply he
me hod o py amidal decomposi ion oge he wi h he
analysis o de ia ion o measu e inancial pe o mance.
Decomposi ion analysis helps o analyse he ac o s
a ec ing selec ed key measu es and o quan i y hei
impac on he key measu es. The me hod o py amidal
decomposi ion is usually used o quan i y he impac o
D. Rich a o á, B. P áčko á, M. Bo o co á – E alua ion o he pe o mance o sec o s acco ding o EVA: The case o he
Czech Republic
19
he componen indica o on he change in he base indi-
ca o (Gu ný, Rich a o á and Čulík, 2017). This
me hod also allows s udies o iden i y he in e ac ions
and ela ionships among he componen indica o s.
Du Pon analysis, as a common me hod o py ami-
dal decomposi ion, is one o he o ms o inancial
s a emen analysis ha decomposes inancial indica o s
in o hei componen indica o s. The concep o he Du
Pon model was i s designed in 1918 by F. Donaldson
B own. He ecognized ha a ma hema ical ela ionship
exis ed be ween commonly compu ed indica o s, he
ne p o i , he o al asse u no e and he ROA. This
was he o iginal Du Pon model (Doo asamy, 2016). In
he 1970s, he ocus shi ed om he ROA o he ROE,
which led o he i s modi ica ion o he o iginal Du
Pon model (Gi man, 1998). The modi ied Du Pon
model became a s anda d o all inancial indica o
analysis (B igham and Hous on, 2001; Zalai, 2002). I
is possible o apply Du Pon analysis o o he inancial
indica o s, such as economic alue added (Gu ný,
Rich a o á and Čulík, 2017; Rich a o á, 2016).
Py amidal decomposi ion is an impo an pa o i-
nancial analysis, especially when analysing a com-
pany’s p o i abili y o sha eholde s; o example, he
Du Pon analysis o he e u n on equi y (ROE) decom-
poses he ROE in o o he indica o s, e e ed o as com-
ponen indica o s. While a change in any o he compo-
nen indica o s shows an ob ious change in he decom-
posed indica o , he obse ed change is gi en by he
change in all he componen indica o s simul aneously,
and he ques ion is which indica o ep esen s he main
eason o such a change.
The me hods o inancial pe o mance analysis a e
usually applied o companies, bu hese companies a e
analysed sepa a ely, ega dless o he sec o in which
hey ope a e. Mos au ho s ha e add essed he issue o
company pe o mance alua ion, bu only a ew publi-
ca ions ha e conside ed indus y pe o mance alua-
ion; see Bo o co á and Rich a o á (2020) and
Dluhošo á, P áčko á and Rich a o á (2018), whose
conclusions we will ex end in his a icle.
The aim o his pape is o analyse he inancial pe -
o mance o sec o s o he Czech economy using EVA
and, based on he esul s, o p opose a py amidal de-
composi ion o quan i y he indica o s a ec ing EVA.
The analysis ocuses on he pe iod 2012 o 2019. Based
on ou indings, we iden i y he main di isions in lu-
encing he manu ac u ing sec o and, espec i ely, he
Czech economy.
The pape is s uc u ed as ollows. Fi s , economic
alue added is cha ac e ized as a inancial pe o mance
measu e. Then, he py amidal decomposi ion o EVA
is p oposed. To unde ake an in-dep h analysis o he
componen indica o s’ impac on he base indica o , he
analysis o de ia ions is applied. In his pape , he in e-
g al me hod is used o quan i y he impac o he com-
ponen indica o s on he base indica o . Finally, he e-
sul s o he inancial pe o mance analysis a e summa-
ized and discussed.
2. E alua ion o inancial pe o mance
The me hodological pa o he pape is di ided in o
wo subchap e s. In he i s pa , economic added alue
is used as a measu e o e alua ing he inancial pe o -
mance o selec ed sec o s o he Czech economy. The
second pa ocuses on he py amidal decomposi ion
and he analysis o de ia ions. Then, py amidal decom-
posi ion o economic alue added is p oposed and he
in eg al me hod is desc ibed as one o he me hods o
he analysis o de ia ions ha se es o quan i y he in-
luence o he componen inancial indica o s.
2.1 Economic alue added (EVA)
The e a e many ways in which economic alue added
can be exp essed. Acco ding o G an (2003), he e is
an accoun ing way and a inance way o de ining eco-
nomic alue added. F om a inance pe spec i e, eco-
nomic alue added is de ined in e ms o how i ela es
o he company’s ma ke alue added. In his con ex , a
company’s ma ke alue added o ne p esen alue is
equal o he p esen alue o i s expec ed u u e eco-
nomic alue added.
Economic alue added is based on he concep o
economic p o i . When he economic p o i is posi i e,
he company ea ns mo e han he weigh ed a e age cos
o capi al, which also means ha some weal h is c ea ed
o he sha eholde s.
One way o de ining economic alue added de-
sc ibes i as he di e ence be ween a company’s ne op-
e a ing p o i a e axes (NOPAT) and i s weigh ed a -
e age cos o capi al. B igham (2001) also calcula ed
economic alue added using he ollowing basic o -
mula:
𝐸𝑉𝐴 = 𝑁𝑂𝑃𝐴𝑇 − 𝑊𝐴𝐶𝐶 ∙ 𝐶, (1)
whe e NOPAT is he company’s ne ope a ing p o i a -
e axes, WACC is he weigh ed a e age cos o capi al
and C is he capi al.
Acco ding o Eh ba (1998), Mařík (2005) and Ve -
nimmen (2005), economic alue added can also be ex-
p essed as ollows:
𝐸𝑉𝐴 =(𝑅𝑂𝐸 − 𝑅𝐸)∙ 𝐸, (2)
whe e ROE is he e u n on equi y, RE is he cos o eq-
ui y and E is he equi y. In his case, he di e ence be-
ween ROE and RE is called he sp ead. The sp ead is a
e y impo an pa ame e in luencing EVA. I he
Ekonomická e ue – Cen al Eu opean Re iew o Economic Issues 23, 2020
20
sp ead is posi i e, i means ha he indus y o com-
pany ea ns mo e han he cos o he equi y. This ex-
p ession o economic alue added is used o e alua e
he inancial pe o mance o indi idual sec o s o he
Czech economy.
2.2 Desc ip ion o he py amidal decomposi ion o
economic alue added and he analysis o de i-
a ions
The py amidal decomposi ion helps o iden i y he e-
la ionships be ween inancial indica o s and o quan i y
he impac o he componen indica o s on he base in-
dica o (Dluhošo á, 2010). The e a e many ways o de-
compose economic alue added in o i s componen i-
nancial indica o s.
Fo he analysis o economic alue added, we p o-
pose he ollowing py amidal decomposi ion (see Fig-
u e 1). The i s le el o he decomposi ion is based on
he alue o equi y and he sp ead. The sp ead is de e -
mined as he di e ence be ween he e u n on equi y
and he cos o capi al. A he lowe le els o he de-
composi ion, a en ion is paid o a deepe analysis o he
e u n on equi y. Selec ed inancial indica o s analyse
he ne p o i gene a ion, e u n on asse s and inancial
le e age. The main componen s o he decomposi ion
a e highligh ed.
Fo an in-dep h analysis o he impac o he com-
ponen indica o s on he base indica o , i is use ul o
apply he analysis o de ia ions. Th ough his analysis,
i is possible o quan i y he impac o he changes in
he componen indica o s on he base indica o
(Zmeškal, 2013). Using py amidal decomposi ion o-
ge he wi h he analysis o de ia ion helps no only o
iden i y he ela ionships be ween he inancial indica-
o s bu also o quan i y he impac o he selec ed indi-
ca o s on he base indica o .
Gene ally, any base indica o x can be exp essed as
a unc ion o he componen indica o s ai, ha is,
𝑥 = 𝑓(𝑎1, 𝑎2… 𝑎𝑛). (3)
The change in he base indica o can be de e mined
as he sum o he in luences o he componen indica-
o s,
∆𝑦𝑥=∑∆𝑥𝑎𝑖
𝑖, (4)
whe e x is he base indica o , Δyx is he change in he
base indica o , ai is he i- h componen indica o and
Δxai is he impac o he i- h componen indica o on he
change in he base indica o .
Among he indica o s, i is possible o dis inguish
be ween wo ope a ions – he addi i e ela ionship and
he mul iplica i e ela ionship (Zmeškal, 2013).
The addi i e ela ionship can be exp essed as
𝑥 = ∑𝑎𝑖= 𝑎1+ 𝑎2+ ⋯ + 𝑎𝑛.
𝑖 (5)
The quan i ica ion o he impac unde he addi i e
ela ionship is gene ally applicable, and he o al im-
pac is di ided in p opo ion o he changes in he com-
ponen indica o as ollows:
∆𝑥𝑎𝑖=∆𝑎𝑖
∑∆𝑎𝑖𝑖 ∙ ∆𝑦𝑥, (6)
whe e Δai = ai,1 – ai,0, ai,0 is he alue o he i- h com-
ponen indica o a he beginning o he analysed pe iod
and ai,1 is he alue o he i- h componen indica o a
he end o he analysed pe iod.
The mul iplica i e ela ionship can be exp essed
as ollows:
𝑥 = ∏𝑎1𝑖 = 𝑎1∙ 𝑎2∙ … ∙ 𝑎𝑛. (7)
Acco ding o he way in which he mul iplica i e
ela ionship is handled, we can dis inguish i e basic
me hods: a me hod o g adual changes, a decomposi-
ion me hod wi h a esidue, a loga i hmic me hod, a
unc ional me hod and an in eg al me hod (Zmeškal,
2015).
In his pape , he in eg al me hod is used o quan i y
he impac o he componen indica o s on he base in-
dica o . While, in he pas , he in luence o he compo-
nen indica o s on he base indica o was calcula ed ac-
co ding o he loga i hmic o unc ional me hod
(Dluhošo á, 2004; Rich a o á, 2007), nowadays, he
in eg al me hod is mo e o en applied (see Dluhošo á
and Zmeškal, 2014; Gu ný, Rich a o á and Čulík,
2017). The ad an age o his me hod is ha i can e-
lec simul aneous changes in all he analysed indica-
o s. The e a e no p oblems o he indica o anking and
a ising o esidues. The p oblem o nega i e alues o
he indica o s, one o he disad an ages o he loga i h-
mic me hod, does no occu . I is also possible o ana-
lyse non-linea ope a ions, and he in e p e a ion can be
easie and clea e (Zmeškal, 2013).
Acco ding o Dluhošo á and Zmeškal (2014), he
p ocedu e o he in eg al me hod is analogical o ha o
he loga i hmic me hod; he only di e ence is ha he
linea componen o he Taylo se ies app oxima ion is
applied, and he esul ing in luence quan i ica ion o
any componen indica o is exp essed as
D. Rich a o á, B. P áčko á, M. Bo o co á – E alua ion o he pe o mance o sec o s acco ding o EVA: The case o he
Czech Republic
21
-
.
. . ++ +
EAT/EBT
EBT/EBIT
EBIT/R
R/A
EAT/E
Eo he /E
EAT/EBIT
.
EBIT/A
A/E
EVA
ROE
RE
SPREAD
.
L/E
OL/E
E
Figu e 1 Economic alue added – py amidal decomposi ion
No a ion used: E – equi y, EAT – ea nings a e ax, EBIT – ea nings be o e in e es and ax, EBT – ea nings be o e
ax, A – asse s, R – e enues, Eo he – o he equi y (E-EAT), L – liabili ies, OL – o he liabili ies and RE – cos o
equi y, which a e de e mined acco ding o a build-up model om he Minis y o Indus y and T ade o he Czech
Republic.
𝛥𝑥𝑎𝑖=𝑅𝑎𝑖
𝑅𝑥´⋅ 𝛥𝑦𝑥, (7)
whe e 𝑅𝑎𝑖=𝛥𝑎𝑖
𝑎𝑖,0 and 𝑅𝑥′=∑𝑅𝑎𝑖.
𝑁
𝑖=1
3. Applica ion
The applica ion sec ion o his pape is di ided in o ou
pa s. A e in oducing he inpu da a, he EVA analy-
sis o he sec o s o he Czech ecqonomy is pe o med.
Acco ding o he mean alues o EVA, he ou sec o s
wi h he highes posi i e and nega i e EVA a e iden i-
ied. Then, he py amidal decomposi ion me hod is ap-
plied and he main ac o s in luencing EVA a e ound.
The nex pa is dedica ed o he analysis o he manu-
ac u ing sec o as he mos impo an sec o o he
Czech economy.
3.1 Inpu da a
The his o ical da a o economic alue added and i s de-
elopmen in he selec ed sec o s o he Czech Republic
a e a ailable on he websi e o he Minis y o Indus y
and T ade o he Czech Republic. Table 1 in he appen-
dix shows he de elopmen o EVA in he selec ed sec-
o s o he Czech Republic in he pe iod 2012–2019.
Annual da a a e used o he analysis. The indi idual
sec o s a e ma ked acco ding o he CZ_NACE classi-
ica ion. These a e A: Ag icul u e, Fo es y and Fish-
ing; B: Mining and qua ying; C: Manu ac u ing; D:
Elec ici y, Gas, S eam and Ai Condi ioning Supply;
E: Wa e Supply; Sewe age, Was e Managemen and
Remedia ion Ac i i ies; F: Cons uc ion; G: Wholesale
and Re ail T ade; Repai o Mo o Vehicles and Mo o -
cycles; H: T anspo a ion and S o age; I: Accommoda-
ion and Food Se ice Ac i i ies; J: In o ma ion and
Communica ion; L: Real Es a e Ac i i ies; M: P o es-
sional, Scien i ic and Technical Ac i i ies; and N: Ad-
minis a i e and Suppo Se ice Ac i i ies.
3.2 Analysis o indi idual sec o s’ economic alue
added
This pa is dedica ed o he EVA analysis o he sec o s
o he Czech economy. Table 1 in he appendix shows
he EVA alues o he sec o s o he analysed pe iod
2012–2019. Mos sec o s, such as sec o s B, E, F, H and
L, gene a ed nega i e EVA alues. On he con a y,
sec o s C and J showed posi i e economic alue added
h oughou he pe iod unde e iew. Since 2016, he
economic alue added o sec o J has been inc easing,
and he highes alue was eached in 2019. This sec o
includes he p oduc ion and dis ibu ion o in o ma ion
and cul u al p oduc s and he p o ision o means o he
ansmission o dis ibu ion o hese p oduc s, as well
as da a o communica ion, IT ac i i ies and da a p o-
cessing and o he in o ma ion se ice ac i i ies. Sec o
C (Manu ac u ing) c ea ed he highes economic alue
added be ween 2015 and 2017. I can be desc ibed as
he d i ing o ce o he Czech economy.
Fo he analysis, he mean alue o EVA o all he
sec o s is de e mined. Based on he esul s, he sec o s
a e anked; see Figu e 2. Fo a deepe analysis, he ou
sec o s wi h he highes posi i e EVA and he ou sec-
o s wi h he highes nega i e EVA a e selec ed.

Ekonomická e ue – Cen al Eu opean Re iew o Economic Issues 23, 2020
22
Figu e 2 Mean alues o EVA ( housand CZK)
The sec o s wi h he highes nega i e mean alue o
EVA include sec o s L, H, G and E. This is because o
hei low alue o equi y and he nega i e alue o
sp ead. The e u n on equi y was much lowe han he
cos o he capi al. By con as , he sec o s wi h he
highes posi i e mean alues o EVA a e C, J, D and
M.
Figu e 3 shows he de elopmen o he economic
alue added o sec o s C, D, J and M as he sec o s ha
gene a ed he highes posi i e mean alue o EVA. Sec-
o C (Manu ac u ing) gene a ed he posi i e economic
alue added h oughou he analysed pe iod. EVA ol-
lowed an upwa d end om 2013 o 2015 and has been
declining since hen. The decline o EVA is due o a
lowe e u n on equi y caused by a educ ion in he ne
p o i , mainly he ope a ing p o i . On he con a y, sec-
o D (Elec ici y, Gas, S eam and Ai Condi ioning
Supply) gene a ed he highes EVA in he i s yea o
he analysed pe iod. In he ollowing yea s, he EAT
dec eased signi ican ly (by mo e han 50% be ween
2013 and 2014), which led o a signi ican educ ion in
he ROE, esul ing in a nega i e sp ead alue. Since
2016, he e has been an inc ease in ex e nal esou ces.
The highe le e age has had a posi i e impac on EVA,
which eached posi i e alues in 2019. Sec o J (In o -
ma ion and Communica ion) gene a ed a posi i e EVA
h oughou he analysed pe iod, despi e he decline be-
ween 2012 and 2014, and i has inc eased s eadily
since 2015. This inc ease in EVA was due o he highe
ne p o i , which had a posi i e impac on he e u n on
equi y. In 2012, sec o M (P o essional, Scien i ic and
Technical Ac i i ies) gene a ed he highes nega i e
EVA. Since ha yea , he ne p o i and e u n on equi y
ha e inc eased, exe ing a posi i e e ec on EVA. In
2017–2018, he esul ing EVA was a ec ed by a sig-
ni ican dec ease in he ne p o i due o a decline in
sales. In 2019, sec o M had al eady gene a ed a posi-
i e EVA because he ne p o i inc eased and hus he
e u n on he equi y exceeded he cos o he capi al em-
ployed.
Figu e 4 shows he de elopmen o he EVA o he sec-
o s, including sec o s E, G, H and L as he sec o s ha
gene a ed he highes nega i e mean alue o EVA.
Figu e 3 EVA– selec ed sec o s wi h he highes posi i e mean alues o EVA ( housand CZK)
-50000000 050000000 100000000
C
J
D
M
N
I
A
F
B
E
G
H
L
Mean alue o EVA
Sec o s
-40000000
-20000000
0
20000000
40000000
60000000
80000000
100000000
120000000
2012 2013 2014 2015 2016 2017 2018 2019
EVA
Analysed pe iod
C D J M
D. Rich a o á, B. P áčko á, M. Bo o co á – E alua ion o he pe o mance o sec o s acco ding o EVA: The case o he
Czech Republic
23
Figu e 4 EVA– selec ed sec o s wi h he highes nega i e mean alue o EVA ( housand CZK)
Sec o s E (Wa e Supply; Sewe age, Was e Man-
agemen and Remedia ion Ac i i ies), F (Cons uc-
ion), H (T anspo a ion and S o age) and L (Real Es-
a e Ac i i ies) gene a ed a nega i e alue o EVA du -
ing he analysed pe iod. I was a ec ed by a nega i e
alue o he sp ead. Only sec o G (Wholesale and Re-
ail T ade; Repai o Mo o Vehicles and Mo o cycles)
was able o gene a e a posi i e EVA in he yea s 2016
and 2018, when he e u n on he equi y was highe han
he cos o equi y.
Indus ial p oduc ion plays an impo an ole in
e alua ing he pe o mance o he Czech economy. Ac-
co ding o CZ-NACE, ac i i ies classi ied in o sec o s
B (Mining and Qua ying), C (Manu ac u ing), D (P o-
duc ion and Dis ibu ion o Elec ici y, Gas, Hea and
Ai Condi ioning) and E (Wa e Supply; Ac i i ies Re-
la ed o Was ewa e , Was e and Remedia ion) a e con-
side ed as indus ial. The analysis showed ha sec o s
C and D gene a ed a posi i e mean alue o EVA and
sec o s B and E, on he con a y, p oduced nega i e al-
ues.
Figu e 5 shows he de elopmen o EVA o he in-
dus y as a whole and o he sec o s ha a e pa o i .
The manu ac u ing sec o (C) has he la ges sha e in
he esul ing economic alue added o indus y.
Figu e 5 EVA– sec o s o indus y ( housand CZK)
-30000000
-25000000
-20000000
-15000000
-10000000
-5000000
0
5000000
10000000
2012 2013 2014 2015 2016 2017 2018 2019
EVA
Analysed pe iod
E G H L
-40000000
-20000000
0
20000000
40000000
60000000
80000000
100000000
120000000
2012 2013 2014 2015 2016 2017 2018 2019
EVA
Analysed pe iod
B C D E Indus y
Ekonomická e ue – Cen al Eu opean Re iew o Economic Issues 23, 2020
24
Table 2 Fi s le el o decomposi ion o EVA – selec ed sec o s ( housand CZK)
Indica o s
C
D
J
M
E
G
H
L
∆ EVA
24 396 253
-45 574 482
7 213 430
23 057 030
-1 529 667
19 350 701
11 302 654
-2 326 717
∆ E
22 758 122
-45 033 439
6 824 913
16 246 398
729 194
28 686 715
14 047 142
2 305 399
∆ SPREAD
1 638 131
-541 042
388 517
6 810 632
622 472
-9 336 014
-2 744 488
-4 632 117
3.3 Py amidal decomposi ion o EVA o sec o s C
and D
The py amidal decomposi ion me hod is used o pe -
o m a deepe analysis o he ac o s in luencing he
economic alue added o he selec ed sec o s. The py-
amidal decomposi ion is pe o med as shown in Figu e
1. The in eg al me hod is used o quan i y he e ec s
acco ding o o mula (7). Table 2 shows he change in
EVA, equi y and sp ead in he selec ed sec o s be ween
2012 and 2019.
The i s le el o his decomposi ion quan i ies he
impac o he equi y and sp ead on he economic alue
added. The la ges inc ease in he economic alue
added be ween 2012 and 2019 occu ed in sec o C,
when i inc eased om CZK 2.73 billion o CZK 27.13
billion, a o al inc ease o CZK 24.4 billion. The g ow-
ing end o economic alue added was in luenced by
he ising equi y and sp ead alues. Equi y g ew as e
han loans and liabili ies. The g owing sp ead signals a
g ea e app ecia ion o equi y han he cos s incu ed.
Sec o C (Manu ac u ing) was able o inc ease i s ne
p o i du ing he analysed pe iod, which had a posi i e
e ec on he inal alue o EVA.
On he o he hand, he la ges decline was eco ded
in sec o D (Elec ici y, Gas, S eam and Ai Condi ion-
ing), in which he economic alue added ell by CZK
45.58 billion, om CZK 47.98 billion o CZK 2.4 bil-
lion. The eason o his dec ease was a lowe alue o
gene a ed p o i caused by a dec ease in sales. In he
yea s 2014 o 2018, i eached a numbe o nega i e
alues, when he cos o he capi al exceeded he e u n
on his capi al, which caused a dec ease in EVA. In
2019, he sec o had al eady c ea ed posi i e economic
alue added h ough g ea e s eng hening o equi y.
Fo a deepe analysis o inancial pe o mance, he
py amidal decomposi ion me hod was applied o all he
sec o s lis ed in Table 2. The in luence o he compo-
nen indica o s is shown in Figu e 6 and Figu e 7 in he
appendix. The py amidal decomposi ion e ealed ha
he o de and magni ude o he in luences a e changing.
A posi i e in luence means ha , i he in luence o he
componen indica o inc eases, hen he EVA alue in-
c eases. On he o he hand, a nega i e in luence esul s
in a dec ease.
As sec o s C and D signi ican ly a ec he pe o -
mance o indus y, Table 3 shows he in luences o he
selec ed componen indica o s on he EVA indica o s.
The py amidal decomposi ion e ealed ha he o de
and magni ude o he in luences o he componen indi-
ca o s o sec o s C and D a e changing.
The py amidal decomposi ion o EVA e ealed
ha , in sec o C, he alue o equi y had he g ea es
posi i e e ec on he change in EVA. The cos o equi y
is ano he indica o ha had a posi i e e ec on he
change in EVA, and he EAT/EBT indica o was he
indica o wi h he hi d-la ges in luence, bu his indi-
ca o had he opposi e e ec as i educed EVA.
Table 3 Componen indica o s o EVA – sec o s C and D ( housand CZK)
C
D
Indica o s
In luence
O de o in luences
In luence
O de o in luences
RE
1 769 182
2 (+)
30 828
7 (+)
EAT/EBT
-355 804
3 (-)
32 429
6 (+)
EBT/EBIT
244 861
4 (+)
712
10(+)
EBIT/R
-8 737
7 (-)
-3 025
9 (-)
R/A
-28 533
5 (-)
-26 141
8 (-)
EAT/E
446
8 (+)
547 032
3 (+)
O he E/E
-446
9 (-)
-547 032
4 (-)
L/E
17 569
6 (+)
-931 871
2 (-)
O he L/E
-406
10 (-)
356 026
5 (+)
E
22 758 122
1 (+)
-45 033 439
1 (-)
D. Rich a o á, B. P áčko á, M. Bo o co á – E alua ion o he pe o mance o sec o s acco ding o EVA: The case o he
Czech Republic
25
In sec o D, wo indica o s had he la ges nega i e
impac on he EVA indica o : he alue o equi y and
he sha e o liabili ies in he equi y. Bo h indica o s e-
duced he alue o EVA in he pe iod unde e iew. On
he con a y, he EAT/E indica o had a posi i e impac .
The analysis showed ha , in bo h sec o s, ou com-
ponen indica o s had a posi i e e ec on he economic
alue added, he cos o capi al, he EBT/EBIT indica-
o and he EAT/E indica o and he sha e o he o he
componen s o equi y in he o e all equi y. Th ee ac-
o s had he opposi e e ec on he alue o EVA in sec-
o s C and D. The indica o o liabili ies in he equi y
caused a dec ease in he economic alue added in sec o
D and an inc ease in sec o C. The EAT/EBT indica o
and he sha e o o he liabili ies in he equi y inc eased
he EVA indica o s in sec o D and con e sely educed
he alue o EVA in sec o C.
The analysis o de ia ions e ealed ha se en com-
ponen indica o s had he same impac on he economic
alue added in bo h sec o s. Only h ee indica o s had
he opposi e e ec . Equi y had he bigges in luence on
he change in EVA, which inc eased in sec o C and
dec eased in sec o D (see Table 3).
3.4 Main ac o s in luencing he EVA o manu-
ac u ing
Acco ding o ou analysis, one o he mos impo an
sec o s o he Czech economy is he manu ac u ing sec-
o . The manu ac u ing sec o con ains 24 di isions,
which ha e CZ_NACE code numbe s. An EVA analy-
sis o each di ision in he pe iod 2008–2017 can be
ound in he s udy by Rich a o á and P áčko á (2019).
In his pape , he analysed pe iod was changed o 2012–
2019. Fi s , he economic alue added was calcula ed
o all he di isions o sec o C. Then, he di isions
we e classi ied acco ding o he mean alues o EVA.
The di isions wi h he la ges nega i e mean alues
o EVA include di ision 24 (Manu ac u e o Basic
Me als, Me allu gy; Cas ing o Me als), 10 (Manu ac-
u e o Food P oduc s) and 26 (Manu ac u e o Com-
pu e , Elec onic and Op ical P oduc s). These nega i e
alues o EVA we e caused by he low alue o equi y
and he nega i e alue o he sp ead. The e u n on cap-
i al was much lowe han he cos o capi al. In con as ,
he di isions wi h he highes posi i e mean alues o
EVA a e 22 (Manu ac u e o Rubbe and Plas ic P od-
uc s), 27 (Manu ac u e o Elec ical Equipmen ) and 29
(Manu ac u e o Mo o Vehicles (Excep Mo o cycles),
T aile s and Semi- aile s).
Fo a deepe analysis o he economic alue added
o sec o C, he py amidal decomposi ion was used, as
shown in Figu e 1. The h ee di isions wi h he highes
mean alue o EVA we e selec ed. Table 4 con ains
hese selec ed di isions’ EVA in he analysed pe iod.
Di isions 22 and 29 c ea ed posi i e economic
alue added du ing he analysed pe iod. Only in di i-
sion 27 did he economic alue added each nega i e
alues, which occu ed in he yea s 2018 and 2019.
These nega i e alues we e due o a lowe e u n on
capi al and a ising cos o capi al. The eason o he
dec easing ROE was mainly he signi ican dec ease in
he ope a ing p o i . The economic alue added o di i-
sions 22 and 27 dec eased du ing he analysed pe iod,
while he EVA indica o o di ision 29 inc eased.
Figu e 8 shows he alues o de ia ion o he com-
ponen indica o s o he selec ed di isions’ EVA (29,
22 and 27) o sec o C (Manu ac u ing), which had he
highes posi i e economic alue added in he pe iod
2012–2019.
Table 4 EVA – selec ed di isions o sec o C ( housand CZK)
2012
2013
2014
2015
2016
2017
2018
2019
C
2 731 592
5 940 525
77 086 034
106 443 249
90 018 849
90 941 304
41 855 681
27 127 845
22
8 482 070
10 663 137
15 285 525
19 632 581
19 964 189
12 810 204
4 293 218
5 665 939
27
3 537 431
4 711 551
8 124 412
10 255 171
8 073 676
3 556 955
-1 452 854
-1 216 991
29
9 720 537
4 686 415
26 214 400
42 528 321
38 436 256
36 398 356
19 857 102
22 170 441