economic profit

economic profit
Also known as economic value added or shareholder value added. A measure of profit performance calculated by subtracting a charge for shareholders' capital.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Economic Profit (Or Loss) — The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for economic value added (EVA). Don t confuse this with accounting profit , which is what most… …   Investment dictionary

  • Economic anthropology — is a scholarly field that attempts to explain human economic behavior using the tools of both economics and anthropology. It is practiced by anthropologists and has a complex relationship with economics. There are three major paradigms within the …   Wikipedia

  • economic value added — See economic profit. Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • Profit (economics) — In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs (both explicit and implicit) of a venture to an entrepreneur or investor, whilst economic profit (also abnormal, pure,… …   Wikipedia

  • Profit (accounting) — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Economic value added — In corporate finance, Economic Value Added or EVA® is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital. GAAP is estimated to ignore US$300… …   Wikipedia

  • Economic Value Added - EVA — A measure of a company s financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as economic profit .) The formula for… …   Investment dictionary

  • Economic depreciation — In economics and accounting, economic depreciation is seen as the change in the market value of capital over a given period. It is calculated as the market price of the capital at the beginning of the period minus its market price at the end of… …   Wikipedia

  • profit — profiter, n. profitless, adj. profitlessly, adv. profitlessness, n. /prof it/, n. 1. Often, profits. a. pecuniary gain resulting from the employment of capital in any transaction. Cf. gross profit, net profit. b. the ratio of s …   Universalium

  • Economic Value Added — EVA A performance measure used to evaluate a company s economic profit (i.e., the value added to a company by its activities in a given time period). It is the calculation of a company s net operating profit after taxes, minus a cost of capital… …   Accounting dictionary

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