4.3 EVA Dimensions Database
EVA Dimensions is a consulting organization that offers benchmarking, valuation modeling and other financial database services designed to facilitate the measurement and maximization of value-based management. The EVA
Dimensions database includes EVA Margin and EVA Momentum financial performance measures for 5,701 firms
in a variety of industries. The EVA Dimensions database has several different EVA Momentum calculations including a
base metric, a five-year cumulative average metric as well as before-tax metrics. The EVA Momentum measure used to
test our study hypotheses is the EVA Before-tax Momentum 5-Year Average (EVAM5YABT). Using a pre-tax calculation,
the EVAM5YABT metric allows for comparison of operational efficiency and asset management that might be
hidden after taxes are imposed on the firms. EVAM5YABT is calculated as a five-year cumulative average to more effectively capture annual growth (or decline) in the economic profit margin of a firm over time. Further, EVAM5YABT’s longerterm view offers a more valid assessment of the ongoing impact of supply chain management competency on
shareholder value (Stewart, 2009).