Enterprising value(EV) is a better measure of a firm's real market value than market capitalization as it takes debts and cash reserves into account. Market capitalization does not give a clear idea of the amount an investor needs to buy a firm. If a firm has cash reserves, the buyer is incurring lesser costs than the amount he is paying and it is opposite when the firm has debts. EV is the sum of a firm's market capitalization and its net debt. The drawback of EV is that it does not consider the interest costs and income over time. So EBIT is necessary despite the fact that EV gives a rough idea of the true value of a firm. Read more at: http://value-picks.blogspot.in/2017/05/using-enterprise-value-to-compare.html?m=1

Optimizing production for manufacturers with complex operations is not an easy task. There can be volatility in costs and prices, managing multiple plants and figuring out the combination of inputs for products are complex operations. These complexities are abundant in the chemical industry. Advanced data modelling and analytical techniques have helped this industry perform better. Data about companies’ performances can be put into a mathematical model which predicts production under different conditions. The resulting model brought sea changes in the companies’ production decisions, increased plants’ EBIT returns and production capacity. This change was not without a side benefit: better cross-unit collaboration and decisions were made with all constraints and trade-offs in mind. Read more at: http://www.mckinsey.com/insights/operations/taming_manufacturing_complexity_with_advanced_analytics