Analysis

经济利润

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.

Languages

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

经济利润 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 经济利润?

In this glossary, 经济利润 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 经济利润 used in finance?

In finance communication, this term appears in contexts such as: "正的经济利润表示公司创造的回报超过资本成本,为股东创造价值。"

Why does 经济利润 matter in finance?

经济利润 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 经济利润?

经济利润 is mainly used by Financial Analysts, Bankers, and Traders.

What category does 经济利润 belong to?

In this glossary, 经济利润 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

经济利润

Localized example

正的经济利润表示公司创造的回报超过资本成本,为股东创造价值。

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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