Definicja economic profit

Co znaczy ECONOMIC PROFIT:

Economic Profit is a single-period key figure that measures the return on an investment.

Methods of calculation:

using the Capital Charge method:

Economic Profit = NOPAT - WACC * invested capital

using the Value Spread method:

Economic Profit = (ROCE - WACC) * invested capital, where...

NOPAT = Net Operating Profit after Tax

WACC = Weighted Average Cost of Capital; weighted by equity and liabilities taking the risk into account)

ROCE = Return on Capital Employed (realisierte Rendite)

= NOPAT / invested capital

From the shareholder point of view, the investment in an enterprise is value-added as long as the realized return is greater than the cost of the invested equity and liability.