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Most commonly, the gross proceeds of a business transaction less the costs of the transaction; i.e., net proceeds. Excess of revenues over expenses for a transaction; sometimes used synonymously with net income for the period. Gain realized from business or investment over and above expenditures.

Accession of good, valuable results, useful consequences, avail, or gain. The benefit, advantage, or pecuniary gain accruing to the owner or occupant of land from its actual use; as in the familiar phrase rents, issues and profits, or in the expression mesne profits.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Numerical example of the entrepreneur's contribution Accounting profit $57,000 Foregone interest 1,000 Foregone rent 5,000 Foregone wages 22,000 Foregone entrepreneurial income 5,000 Total implicit costs $33,000 Economic profit $24,000
For every [pounds sterling]100 of revenue that Newcastle United earned between 2011-16 whilst in the Premier League, it achieved the highest level of economic profit in the division at [pounds sterling]6.33, which was 47% higher than the next most-efficient club Tottenham Hotspur.
Accordingly, the performance appraisal based on economic profit would classify the firm as growth-oriented, and justifiably so.
Intermingled in the EVA model is the traditional concept of economic profit, which is explained as being the margin that exists between operating profit and the cost of capital used in order to produce the income (Ooi & Liow, 2002).
Key words: Yield, BCR, Gross margin, Net Revenue, Economic Profit.
The added economic value represents an estimate of the real economic profit, or the amount of the earnings that exceed the minimum rate accepted by the investors.
The decision to be an entrepreneur is a deeply personal one that requires an individual to weigh many factors that are too quickly swept under the rug of economic profit maximization in the usual treatment of firm entry.
The key to generating positive economic profit is in a firm's ability to charge highly for its products and services.
In particular, managing for shareholder value requires a focus on 'economic profit' (as distinguished from 'accounting profit'), which in turn requires that accurate estimates of cost of capital be calculated and incorporated on a disciplined basis into all corporate investment decisions, domestically and internationally.
In its classic form, a corporation can be viewed as an investment vehicle, which, according to Milton Friedman, has the social responsibility to maximize economic profit (New York Times Magazine, 9/13/70).

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