EVA refers to the net operating profit after tax of an enterprise minus the opportunity cost of all invested capital, including equity and debt. The accounting profit index usually used by enterprises to evaluate their operating conditions is flawed, and it is difficult to correctly reflect the real operating conditions of enterprises, because it ignores the opportunity cost of shareholders' capital investment.

Only when the profit of an enterprise is higher than its capital cost (including the cost of equity and debt) can it create value for shareholders. Enterprises with high economic added value (EVA) are truly good enterprises. Managers must keep a clear understanding and grasp of the present situation and future development trend of their own enterprises in the process of operating enterprises. This requires managers to look to the future, do a good job in strategic review and budget planning.

Strategic review includes six aspects: value diagnosis, strategic planning management, resource allocation management and business unit combination strategy, investment decision management, design value promotion strategy and financial risk management. Financial risk management and economic value-added management methods remind managers that any use of funds has costs, and avoid managers from using high financial leverage in order to unilaterally pursue the return on net assets.