Corrective action to improve EVA :

1. First, operating performance with respect to operating profit margins or asset turnover ratios could be improved to generate more revenue without using more capital.

2. Second, the capital invested in the business might be reduced by selling under-utilized assets; this strategy will simultaneously improve operating performance through a higher asset turnover ratio, as well as a reduced capital charge against those earnings because of a reduced debt or equity capital investment.

3. Third, redeploy the capital invested to projects and activities that have higher operating performance than the current projects or investments are exhibiting.

4. And fourth, if the business is not highly leveraged, change the capital structure by substituting lower cost debt for higher cost equity. Although this last strategy will decrease net income because of the higher interest cost, it will improve the EVA of the business because the total cost of debt and equity is reduced, and EVA measures the value created after all costs of capital (debt and equity) have been taken into account.