eva express (master kpi dashboard) user guide kpi dashboar… · kpi dashboard is designed to...

The path to financial truth.

EVA® is a registered service mark of EVA Dimensions LLC (in the field of financial data, valuation analytics, and investment management) and of Stern Stewart & Co. (in the field of financial and incentive consulting) Copyright © 2009 by EVA Dimension LLC. All rights reserved

EVA Express (Master KPI

Dashboard) User Guide



EVA Express 4.5 -- the Essential FRS Companion

#1 best EVA financial analysis tool on the market

Faster, more accurate, more penetrating insights

See the big picture, and details that count

Enhanced ability to project real value

Populate Excel dashboards with up to 10

companies, sectors, and/or indices at a time - in

seconds

Access a series of interactive charts, graphs and

comp sheets for step-by-step de-construction of a

company's performance , risk and valuation

relative to peers

Includes up to 20 years of Annual data, 6 years of

TFQ data, 12 qtrs of Quarterly data & nightly mkt

updates

Features:

Applications: Drill into underlying drivers of profitability & capital

efficiency by company, sector or indices

Examine trends in market expectations, valuation

multiples & risk profiles

View peer comp and industry stats to identify

competitive strengths & weaknesses and put

those insights into perspective

Utilize as a back-drop for developing projection

assumptions

Benefits:

Provides access to detailed fundamental EVA analytics ,enhancing your overall understanding of the EVA Momentum

methodology, allowing you to dig deeper, and expanding the role and power it can play in tracking performance trends,

benchmarking vs peers or against internal units, deconstructing forward plan expectations

*Latest enhancements include better search functionality, industry/indices aggs and percentile breakouts, 20-Year trend view, COC

reconciliation, PRVit metrics, and more GAAP Gaps and variant perceptions

2



Table of Contents

Overview of Master KPI Dashboard – key features and

functionality of the different reports and charts

Master KPI Dashboard User Instructions – how to

populate the dashboard in FRS and use the user-controls

within the dashboard

3



EVA Express (Master KPI Dashboard)The Master KPI Dashboard is a pre-structured Excel Workbook that is furnished as part of your license to FRS. You run a set

of Standard Reports in FRS, export them into specific tabs on the Master KPI Dashboard Excel Template, and voila, you will

automatically be able to view a wide spectrum performance, valuation & benchmarking statistics, annotated to guide you in

interpreting what you see as well as prebuilt charts and graphs to utilize for presentations and deliverables.

You can drop in up to 10 runs and rotate among them. Use this to examine your company vs. a set of public peers or an

aggregation of peer companies. Or, use it to drop in a group of business units and rotate your view among them. The Master

KPI Dashboard is designed to assist in developing critical insights that will allow you to better evaluate and answer key

questions surrounding historical and recent financial/operational performance, valuation, risk, etc. The Master Dashboard is

only a beginning. Edit and expand it to meet your needs, and share your best practices within the FRS Community.

The Dashboard covers the gauntlet of Key Performance Indicators areas, including:

EVA PERFORMANCE - Is EVA positive or negative, rising or falling – has the company been an EVA creator or destroyer?, How have margins,

capital intensity, and return on capital changed?, What are the biggest gap sources between net income and EVA? Is there a growing or shrinking

gap between EVA and EPS?

CAPITAL COST COMPONENTS - Which capital cost components are most significant, have most improved/deteriorated?, Do goodwill and special

items capital account for a significant component of cost structure?, What is the risk profile? Compare the risk (variation) in EBITDAR and EVA vs.

sales – are relatively fixed operating and capital costs increasing EVA risk compared to sales risk? Can that be better managed?

DELTA EVA & EVA MOMENTUM - What are the most significant components of the improvement or deterioration in the EVA margin?, Has growth

been profitable, or a detriment to EVA?, For public companies, has the expected EVA Improvement (over 1 to 5 years), expressed as a percent of

sales or capital, been rising or falling, and has actual EVA momentum been in the size and direction to match those expectations?

MVA & SHAREHOLDER WEALTH - Has MVA been positive or negative, on the rise or in decline? How much shareholder wealth has your company

created now vs. 5 years before?, What about the components of MVA, is there relatively more or less reliance on future growth in EVA as indicated

by FVA?

CASH FLOW - Is there a distinct difference between NOPAT and Operating Cash Generation, which is measured before depreciation but after

working capital investment (hence it eliminates non cash sales, inventory accumulations, and reserve draw-downs from profit), leaving the spread

compared to NOPAT as a measure of earnings vs. cash flow quality?, Has the company been shifting either its investment or financing mix over time,

and if so, have the mix shifts been appropriately correlated?

CAPITAL STRUCTURE - What is the current capital structure condition, and how has that evolved through time?, What capital structure mix of debt

and equity has the company employed over time as an average that would be used in determining its weighted average cost of capital?, Are

shareholder distributions sensible in light of the firm’s operating risk, growth strategy, and financial policies?

4



Dashboard Report Tabs & Functionality

Overview Tab: Provides a high-level summary of how the Dashboard is structured, the

different reports and tabs.

Snapshot, Stats, Charts, EVA Mo Pyramid, Benchmark Stats, Benchmark Charts & 20

Year Charts: These worksheets contain your pre-formatted output.

KPI Legend: Lists the KPI definitions including greater explanations and additional

background on calculations.

5



Dashboard Features 7 User Controlled Tabs

Offers a one-page high-level executive tear-sheet and view of some of the

most critical EVA based operating, performance and valuation metrics.

Examines EVA dollars, Key EVA Ratios, Expectations and Valuation. This

includes EVA Spread, Capital Intensity, EVA Margins, Productive Capital

Charges, EVA Momentum, Market Expectations, MVA, Market Multiples and

our PRVit Stock Rating. Benchmarking percentiles and scores are highlighted

with conditional formatting.

Provides the most in-depth view and analysis in the dashboard, presents essential

KPIs in a convenient table that expands step by step to reveal the underlying

drivers and key performance benchmarks and scores with conditional formatting.

Covers Performance and Risk - EVA Measures, EVA Returns, EVA Margins,

EVA Momentum, EVA Per Employee, and Risk, Valuation - MVA, Expectations,

Multiples, PRVit Values, Cash Flow and Credit - Free Cash Flow, Leverage,

Surplus Cash, Distributions, Basics - Conventional Metrics & GAAP Gaps

In this tab you can expand the data in various ways looking at data over 6 TFQs

or 12 Quarters and break out each metric to various level of detail and its

individual components.

Snapshot Report Stats Report

6



7 User Controlled Tabs – continued

An extension of the Stats Tab, consists of a set of pre-structured graphs for one

entity that focus on financial/operating performance results over the past 12

quarters or 6 TFQs.

Includes 7 key sections: MVA, Returns, and Expectations, EVA Momentum and

EVA Margin, Cost Driver Summary, EVABT per Employee, EVA and ROC,

Financial Risk and Return, Variant Perceptions

Each subsection and series of charts consists of a short narrative and explanation

to guide you in interpreting and analyzing the results, this includes a summary of

the key terms and an overview of the calculations used. Provides guidance on

how to leverage this analysis in developing key conclusions and potential

recommendations based on trends.

Examine all the sources of EVA Momentum improvement or degradation. Offers

various historical views, looking over 1 to 5 years and quarter to quarter the year

before, for any of the past 8 quarters. Dig down and examine the underlying

drivers, from Sales, Operating Costs, EBITDAR Margin, Productive Capital

Charges, EVA Before Tax and EVA After Tax Margin. Includes trends relative to a

sector, index or custom group.

In this tab you can choose between 2 EVA Momentum Trees: 1.) 1 to 5 TFQs

strategic view, where the user can specify the time period to examine. 2.) Quarter

vs. Same Q Year Ago, where the user can select any of the most recent 8 Qtrs to

examine year to year EVA Momentum changes based on Quarterly performance.

Charts EVA Momentum Pyramid

7




An extension of the Stats Tab, where you can select and view up to 5 of any 10

companies to benchmark financial/operating performance side by side at any point

in time, looking at TFQ or Quarterly results. Performance percentile scores for

each company are shown for each metric as well as performance at the 50th

percentile. This tab includes a condensed view of the sections shown in the Stats

tab.

This tab provides tremendous value in establishing and benchmarking

financial/operational performance to peers, determining leaders and laggards in

the industry, spotting potential improvement areas, and setting improvement

targets based on where you rank against your peer set.

This tab is an extension of the Charts Tab, where you can select and view up to 5

of any 10 companies or entities to benchmark financial/operating performance

side by side over the last 12 past quarters or 6 TFQs. This tab includes the same

five key sections similar to the Charts Tab, including a comprehensive set of

similar charts and graphs.

Sections include: MVA, Returns, & Expectations, EVA Momentum & EVA Margin,

Cost Driver Summary, EVABT per Employee, and Financial Risk & Return.

Benchmark Stats Benchmark Charts

8




This tab is an extension of the Charts Tab, where you can select and view up to 2

of any 10 companies or entities to benchmark financial/operating performance

side by side over the last 20 years for deeper and longer term trend analysis. This

tab includes the same five key sections similar to the Charts Tab, including a

comprehensive set of similar charts and graphs.

The 5 key sections are: 1.) MVA, Returns, & Expectations, 2.) EVA Momentum &

EVA Margin, 3.) Cost Driver Summary, 4.) ROC, COC & Capital Intensity, 5.)

GAAP Gaps -- Variant Perceptions

Each subsection and series of charts consists of a short narrative and explanation

to guide you in interpreting and analyzing the results, this includes a summary of

the key terms and an overview of the calculations used.

20 Year Charts

9



User InstructionsFinancial intelligence for measuring and maximizing value

10



Two Distinct Dashboards: OPCO vs. FINCO

There are two distinct

dashboards that have been

customized for either an OPCO

or a FINCO

You cannot mix and match

OPCO and FINCO companies

when using the Dashboards

As a first step you must identify

which companies, business units

and competitors you want to

include and whether they are

OPCOs or FINCOs

You will then use the correct

dashboards as specified on the

following slide

OPCO‟s include most traditional

operating firms, FINCO‟s include all

financial institutions, such as:

- Capital Markets

- Commercial Banks

- Consumer Finance

- Diversified Financial Services

- Insurance

- Real Estate & Real Estate Mgmt &

Development

- Thrifts & Mortgage Finance

11



Population Options There are two ways to populate the Dashboard.

The first is manual – you run the reports and copy them into the

Dashboard one at a time, using the Excel export feature of the Reports

module.

The second is an automated version, which uses a “Wizard” and a new

Batch Run function within the Reports module.

You can also use Batch Run to tee up any list of reports you want to run

and possibly export on a regular basis, and not just to populate the

Dashboard. In short, you should find Batch Run to be a dramatic time

saver and means of generating the reports and charts you want to view

on a recurring basis.

Let‟s first look at the automatic method, which we recommend.

12



First Step: Turn on Macros in Excel

13

1. The first step is to obtain a copy of the Master KPI Dashboard, which you have been provided as part of your FRS License.

Once you have a copy, you want to check that your Excel has Macros enabled which the dashboard uses.

2. To do this, first open the

dashboard and click on the

Microsoft Office icon on the top left

and then click on Excel options on

the bottom.

3. Then click on Trust Center and then Trust

Center Settings.

5. Once you have saved the updated settings,

you will need to save and close the dashboard

and reopen it so that Excel will recognize the

Macros in the dashboard. One you have

reopened the file proceed to the next slide.

4. Then click on Macro Setting and under Macro

settings select Enable all Macros, and then press

OK.



Wizard Step 1: Open Batch Reports and Wizard

1. Click Batch Run on Ribbon bar to bring up the

Batch Run pop-up window.

2. Click Wizard to bring up the Wizard pop-up

window.

3. There are 3 methods to

populate the Wizard, we

will cover the first using

the Data Source ellipsis

on slides 14-17. We have

outlined the other 2

alternative approaches on

slide 18 using Group &

Tickers that you are free

to use once you are

comfortable with the first

method.

14



Wizard Step 2: Fill in the Wizard

1. Click the ellipsis to the right of Data

Source, and select the source you want

2. Click down arrow to right of Benchmark to

bring up the standard and custom groups: click

on the one you want, and click on the “x” in lower

left corner to close.

Do not change the Benchmark Options; they are

set by default to the correct values for populating

the Dashboard.

15



Wizard Step 3: Fill in the Wizard (continued)

2. Click down arrow to the right of the Tab Number ,

and select the tab number on the dashboard

worksheets where you want to deposit the reports for

the first company.

3. Click Create, and the wizard will

automatically generate the parameters that

define the reports needed to populate the

Dashboard as shown on the next slide.

1. Click the ellipsis to the right of the Master

Excel File Name, and select the file source

you want to export the reports to, then click

save.

16




2. You can now enter a 2nd data source (a public peer

company or other internal division for instance), and another

tab (2, 3,…..,10) where you want the other data source to be

stored on the dashboard, and click Create again to add

another set of 2 Batch Report Lines. You can include up to

10 data sources in each Dashboard.

3. Once you finished

adding data sources, click

Close and then proceed to

the remaining steps on

the next slide.

17

1. The Wizard automatically generates three lines in the

Batch Run pop-up screen which define the three reports

that go into the Dashboard.




1. Once you‟ve created a Batch Run,

you can give it a name and Save it, and

then subsequently retrieve it by clicking

Open Existing Batch Run

2. Simply click Run, and FRS will run

the reports and export them into the

Dashboard tab number you indicated,

ready for your appraisal.

3. Once the Dashboard process is complete

click Close and navigate to the file you

referenced to export the reports to

4. Before reviewing the dashboard you

created, proceed to the next slide outlining the

two alternative population options.

18



Wizard: Alternative Population Options

1. In addition to

populating the

dashboard as we have

just covered with

individual companies

using the Data Source

ellipsis, shown to the

left, two options exist

that save quite a bit of

time populating the

Wizard once you

become more familiar

with the dashboard

process.

2. The first option is to upload a custom Group you have built that includes up to 10 companies you want to include in the

dashboard. Simply click on the ellipsis next to Group, and select the Group you want. This will automatically load all the

companies in that Group as well as specify the Benchmark to be used and complete all the Tab numbering, the only step

left is to click the ellipsis to the right of the Master Excel File Name, and select the file source you want to export the

reports to, then click save. Then click Create and Close.

3. The second option is to

upload a list of companies using

their tickers. You can either type

in the tickers separated by

commas, or you can click on the

Tickers ellipsis and select up to

10 companies at one time. This

will automatically load all the

companies as well as complete

the Tab numbering. The only

remaining steps are to specify

the Benchmark and the Master

Excel File name to export to.

Then click Create and Close.4. Now proceed to the next slide outlining the

instructions for the Dashboard Excel file you

created.

19



The Dashboard: Use of Selector windows1. All 7 output tabs have a Selector window at the top of each spreadsheet. Click the

down arrow, and select the name of the entity you want to examine.

2. The Snapshot, Stats, Charts, and EVA Mo Pyramid Tab are all linked and

changing the name on any one selector on these 4 tabs automatically shifts the

output of the other three.

4. Instructions for additional

functionality on the user controlled

tabs is covered in the next slides.

3. As you will see on the Benchmark

Stats and Benchmarks Chart tab later,

there are 5 Selector windows which

are independently controlled from the

other 4 tabs.

20



Snapshot Tab: Instructions

21

1. Click down arrow on selector box for the company you

want to examine.

2. Use Excel to “Hide” Columns B-F, which will

automatically update the periods in the chart to remove

blank periods of data.

Note: Performance percentiles

have been highlighted through

conditional formatting. This is

only available for users who have

Excel 2007.



Stats Tab: Instructions

3. Click “1” to “4” to

reveal more detail.

Level “5” provides

performance and

percentile scores.

2. Click “1” for 6 years, “2” to add most recent qtr/prior years, and “3” to see all trailing 12 qtrs.


want to examine.

Note: This tab also uses conditional

formatting available in Excel 2007 to

highlight Performance percentiles

scores.

22



Charts Tab: Instructions

3. Click “1” to collapse reports to section

headers, “4” to reveal all, and scroll down to

section of interest.


want to examine.

2. Click down arrow on selector box to specify either

Quarterly or TFQ data to use in the charts.

23



Charts Tab: Instructions

3. Click “1” to collapse reports to section




want to examine.


Quarterly or TFQ data to use in the charts.

24



EVA Mo Pyramid: Instructions

3. Click “1”

to “5” to

reveal more

detail in

stages

2. Choose Among 2 Trees:

i. 1 through 5 TFQs Strategic View

(Choose between 1 to 5 TFQs)

ii. Choose Qtr vs Same Qtr Year Ago

(Choose ending Qtr from any of most

recent 8 Qtrs)


want to examine.

25



Benchmarks Stats: Instructions

26

3.Click “1” to collapse reports to section



1.Click down arrow on selector boxes for the

companies you want to examine. Review the note

on the adjustments made based on Fiscal Year End

Calendar Month.

2. Click down arrow on selector box to

specify either Quarterly or TFQ data view.

2. Click down

arrow on selector

box to specify

how many

historical periods

to look back. The

maximum is 11

periods for

Quarterly data

and 5 periods for

TFQ data.

Note: This tab also uses conditional

formatting available in Excel 2007 to

highlight Performance percentiles

scores.



Benchmark Charts: Instructions

3. Click “1” to

collapse reports to

section headers, “4”

to reveal all.

1. Click down arrow on selector boxes for the companies you want to

examine. Review the note on the adjustments made based on Fiscal

Year End Calendar Month, it is the same as made on the Benchmark

Stats Tab.


Quarterly or TFQ data view.

27



20 Year Charts: Instructions

2. Click “1” to

collapse reports to

section headers, “2”

to reveal all.

1. Click down arrow on selector boxes for the companies you want to

examine. Review the note on the adjustments made based on Fiscal

Year End Calendar Month, it is the same as made on the Benchmark

Stats Tab.

28



KPI Legend Tab: Definitions and Explanations

29

Click

“1” to

“2” to

revel

more

detail



If you experience any issues with EVA Express, it may be due to one of the following:

1. If you are using Excel 2003, make sure you are using the Excel 2003 version of PRVit Express.

EVA Express OPCO Installation 2003.xls is the version for Excel 2003.

EVA Express OPCO Installation 2007.xlsm is the version for Excel 2007

2. If the buttons and fields do not work at all, it is likely that Macros are not enabled. If you see the Security

Warning at the top of your screen, click on Options and then choose to „Enable this Content‟. If you do

not see the Security Warning, close and reopen your workbook.

Troubleshooting Tips

30



If you are using Excel 2007 and EVA express is not working, your computer may be configured

to disable ActiveX and/or Macros without warning.

1. To enable ActiveX in Excel 2007:

o Open Excel Options by clicking on the windows icon and then select Excel Options

o Open the Trust Center and then click on the Trust Center Settings button

o Select ActiveX settings in the left navigation

o Make sure the first option „Disable all controls without notification‟ is NOT SELECTED. The second

option is recommended: ‘Prompt me before enabling Unsafe for Initialization controls..’

o Click OK

o Close and reopen EVA Express. You should now receive an ActiveX security alert (see previous

slide). Choose to enable ActiveX.

Troubleshooting Tips continued

31



If you are using Excel 2007 and EVA Express is not working at all, your computer may be

configured to disable ActiveX and/or Macros without warning.

2. To change your Macro security settings in Excel 2007:

o Open Excel Options by clicking on the windows icon and then select Excel Options

o Open the Trust Center and then click on the Trust Center Settings button

o Select Macro settings in the left navigation

o Make sure the SECOND option „Disable all controls WITH notification‟ is SELECTED.

o Click OK

o Close and reopen EVA Express. You should now receive a Macro security alert (see slide 28).

Choose to enable Macros.


32




1. If you are using Excel 2003 and receive the warning on

the right, your security settings will need to be changed to

allow PRVit Express to run properly.

2. Go to the Tools menu, and select Macro and Security as

depicted on the bottom right.

3. Change your security setting to „Medium‟ so that you can

choose whether to run Macros. Click OK.

4. ** Close and re-open the EVA Express workbook

before continuing.

33

* Contact support with any password issues at [email protected] 888.500.3560

mailto:[email protected]




34

• If your temporary Internet files take up too much space on your computer, you may need to

delete your temporary internet files:

o In Internet Explorer, select Tools>Internet Options.

o On the Internet Options window, select the Delete button to open the Delete Browsing History window. Check

Temporary Internet files and then the Delete button.



Next Steps

For questions or issues, please contact support at:- [email protected]

- 888.500.3560

To schedule a demo or learn more about

EVA Express, please contact:- Tucker Edmundson

- [email protected]

- (203.561.0837)

35



eva express (master kpi dashboard) user guide kpi dashboar… · kpi dashboard is designed to...

Documents