"Leveraged profit expansion" is a concept that describes how a company uses leverage—primarily debt or fixed costs—to magnify its potential profits and accelerate growth or returns.
Posts tagged as “Operating Profit”
Economic Value Added (EVA)
October 18, 2025 |
Economic Value Added (EVA) is a financial performance metric that measures a company's true economic profit—the value created in excess of the required return of the company's investors.
Shareholder Value Analysis (SVA)
October 18, 2025 |
Shareholder Value Analysis (SVA), often associated with the work of Alfred Rappaport, is a sophisticated approach to financial management and strategic decision-making. It is founded on the principle that the primary objective of a company should be to maximize the economic value created for its equity shareholders.
Business Dictionary
October 5, 2025 |
The ultimate business dictionary featuring nearly 10,000 expertly defined terms and concepts. Quickly find precise, accessible definitions for everything from basic finance to complex industry jargon. Your essential resource for business knowledge and clarity.
Why Economic Value Added (EVA) Is the Best Measurement Tool for Creating Shareholder Value?
September 28, 2025 |
Unlike traditional accounting measures such as net income or earnings per share (EPS), EVA deducts the full cost of capital—including both debt and equity—from net operating profit after taxes (NOPAT).
Financial KPIs
August 30, 2025 |
Financial KPIs, or Key Performance Indicators, are a set of metrics used to measure a company's financial health, performance, and progress toward its goals. They are essential tools for business owners, managers, and investors to gain insight into profitability, liquidity, and operational efficiency.
Cost-Volume-Profit (CVP) Analysis
August 7, 2025 |
Whether you're launching a new product, pricing services, or preparing for scaling, making the right financial decisions depends on a clear grasp of how money moves in and out of your business.
Full-year guidance is a publicly traded company's forecast of its expected financial performance for its entire fiscal year. It includes projections for key metrics.
Return on Capital Employed (ROCE) for Strategic Choice
April 11, 2024 |
Return on Capital Employed (ROCE) serves as a beacon for businesses navigating the complexities of strategic decision-making.
What Information Is Included in Published Final Accounts?
April 4, 2022 |
While stakeholders in a business organization have a use for the published Final Accounts, different stakeholder groups have unequal access to information.
The Main Parts of Profit and Loss Account (P&L Account)
January 15, 2022 |
Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful.