DISSECTING THE NEXUS OF ECONOMIC VALUE ADDED (EVA) AND PROFITABILITY: A SCHOLARLY EXPLORATION OF THEIR INTERDEPENDENT DYNAMICS

This study is conducted with a view to find out if there is any interdependency or correlation exist between Economic Value Added (EVA) and Profitability. To find out that a sample of one company – HUL ltd taken from Indian Fast Moving Consumer Goods (FMCG) industry with the help of Non Probability method (Judgmental sampling technique). The period of study is 6 years from 2014-15 to 2019-20. First of all, calculation of Economic Value Added (EVA) was done on the basis of financial data provided in the annual reports of the company. Then correlational test was done and it was found out that there is a significant correlation exist between EVA and Profit. Then regression test was done to find out that if profitability has any significant impact on EVA and result also supported the argument that profitability has a significant impact on EVA.