Analysis

Profitto Economico

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

Profitto Economico 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 Profitto Economico?

In this glossary, Profitto Economico 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 Profitto Economico used in finance?

In finance communication, this term appears in contexts such as: "Un profitto economico positivo indica che l’azienda ha generato rendimenti superiori al costo del capitale, creando valore per gli azionisti."

Why does Profitto Economico matter in finance?

Profitto Economico 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 Profitto Economico?

Profitto Economico is mainly used by Financial Analysts, Bankers, and Traders.

What category does Profitto Economico belong to?

In this glossary, Profitto Economico 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

Profitto Economico

Localized example

Un profitto economico positivo indica che l’azienda ha generato rendimenti superiori al costo del capitale, creando valore per gli azionisti.

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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