Toimintaarvo

Toimintaarvo, or operating value, is a Finnish term used to describe the value created by a company's operations. It is a key concept in business and finance, particularly in the context of evaluating a company's performance and potential. Toimintaarvo refers to the excess value generated by a company's operations over the required return on its invested capital. In other words, it is the value created by a company's management and employees through their day-to-day activities.

Toimintaarvo is calculated by subtracting a company's weighted average cost of capital (WACC) from its return on invested capital (ROIC). If a company's ROIC is higher than its WACC, it is creating toimintaarvo. Conversely, if a company's ROIC is lower than its WACC, it is destroying value. Toimintaarvo is often used as a metric to evaluate the efficiency and effectiveness of a company's management, as well as its competitive position in the market.

The concept of toimintaarvo is closely related to economic value added (EVA), which is a similar metric used in English-speaking countries. Both toimintaarvo and EVA aim to measure the value created by a company's operations, but they may differ in their specific calculations and applications. Toimintaarvo is a useful tool for investors, analysts, and managers to assess a company's performance and make informed decisions about its future prospects.