Analysis

Profit Économique

The residual profit after subtracting the cost of capital from net operating profit after taxes (NOPAT); used to measure value creation beyond accounting profit, as in Economic Value Added (EVA) frameworks.

Quick answer: The residual profit after subtracting the cost of capital from net operating profit after taxes (NOPAT); used to measure value creation beyond accounting profit, as in Economic Value Added (EVA) frameworks.

This term page is part of the Protermify Finance glossary and is published as static HTML for fast indexing and clear language coverage.

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Quick answer

The residual profit after subtracting the cost of capital from net operating profit after taxes (NOPAT); used to measure value creation beyond accounting profit, as in Economic Value Added (EVA) frameworks.

Why it matters

Profit Économique matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Profit Économique?

In this glossary, Profit Économique refers to: The residual profit after subtracting the cost of capital from net operating profit after taxes (NOPAT); used to measure value creation beyond accounting profit, as in Economic Value Added (EVA) frameworks.

How is Profit Économique used in finance?

In finance communication, this term appears in contexts such as: "Un profit économique positif indique que l’entreprise a généré des rendements supérieurs à son coût du capital, créant de la valeur pour les actionnaires."

Why does Profit Économique matter in finance?

Profit Économique matters because it supports clear communication in Analysis contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Profit Économique?

Profit Économique is mainly used by Financial Analysts, Bankers, and Traders.

What category does Profit Économique belong to?

In this glossary, Profit Économique is grouped under Analysis. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

The residual profit after subtracting the cost of capital from net operating profit after taxes (NOPAT); used to measure value creation beyond accounting profit, as in Economic Value Added (EVA) frameworks.

Operational example

A positive economic profit indicates the firm generated returns in excess of its cost of capital, creating shareholder value.

Localized term

Profit Économique

Localized example

Un profit économique positif indique que l’entreprise a généré des rendements supérieurs à son coût du capital, créant de la valeur pour les actionnaires.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Analysis

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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