This paper deals with the problem of modelling in a formal way the concept of excess profit, also known as residual … income. A common idea is that excess profit is an unequivocal concept, being the difference between profit and costs, where … all types of costs are taken into account, included the opportunity cost, i.e. the profit the entrepreneur would obtain if …

cost and excess profit (residual income), two all-pervasive notions of economics: They are defined by undoing a given …

(ROI), obtained as the ratio of total operating profit (NOPAT) to total invested capital or, equivalently, as the ratio of …

This paper analyzes the relations among different concepts such as earnings, profit, interest, rate, consumption … fundamental relation, shared by all five perspectives and whose ingredients are capital, profit, and cash flow. On the basis of …