## Integrating Earned Value Management (EVM) into Income Statements to Improve Project Management Profitability and Elevate Application in Business and Management### AbstractThis study explores how to improve project management profitability and expand its applications in business and management by incorporating Earned Value Management (EVM) into Income Statements. Through multiple case studies and surveys with shipbuilding and aircraft manufacturing organizations, we analyze the relationships between EVM, profitability, and EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization). Findings indicate that EVM can enhance profitability by aligning financial and project management systems, providing visibility into daily EBITDA for active profitability management, and broadening its application in other management fields.### IntroductionProject management plays a critical role in executing complex tasks within tight constraints. However, it faces limitations in its acceptance and application in broader business and management contexts. This article aims to address these limitations by demonstrating the benefits and practical implications of integrating EVM into income statements.### OverviewIntegrating EVM into income statements involves connecting actual and budgeted values with financial reporting frameworks. This integration provides a comprehensive view of project costs, revenue, and profitability. EBITDA serves as a suitable profitability indicator in this context since it is under project management control and aligns with financial statements.### Benefits of EVM-Income Statement IntegrationIntegrating EVM into income statements offers several benefits, including:- Improved profitability through enhanced visibility and active management of daily EBITDA- Broader application of EVM in various business and management fields, beyond its traditional use in project management- Streamlined information sharing and communication, fostering collaboration between project teams and financial professionals### EVM-Income Statement Integration in PracticeTo validate the concept, we conducted multiple embedded case studies within shipbuilding and aircraft manufacturing corporations. Quantitative and qualitative data was collected through questionnaires and interviews.### ResultsThe research findings подтверждают the following hypotheses:- EBITDA is an appropriate measure of project management profitability due to its exclusion of non-project-controllable factors and its alignment with project management objectives.- Integrating EVM into income statements can effectively maximize project management profitability by providing a clear view of daily EBITDA.- EBITDA plays a crucial role in enhancing operational management, providing real-time visibility into project profitability, and supporting strategic decision-making.### ConclusionIncorporating EVM into income statements improves project management profitability, elevates its significance in business and management, and promotes its broader application in diverse fields. By aligning project management and financial systems, using EBITDA as a profitability indicator, and leveraging daily EBITDA visibility, organizations can enhance their project management practices, optimize profitability, and increase the value of project management in broader business contexts.