The standard formula is: Economic Profit = Total Revenue – Explicit Costs – Implicit Costs Or alternatively: Economic Profit = Accounting Profit – Opportunity Costs In practice, the most ...

Other equations always hold since they are simple accounting identities. The Kalecki Profit Equation is of the latter type. It describes precisely the factors that determine corporate profits.

Economic value added (EVA) calculates the profits that remain after deducting a company's cost of capital. The consulting firm Stern Stewart developed and trademarked EVA, and many large, global ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds ...

Accounting Profit vs. Normal Profit. Maximizing profit is a goal for all businesses if they aim to keep their doors open, but there are circumstances when even a profitable business might shut ...

Accounting Equation for Profit & Loss Statements. The accounting equation, assets equals liabilities plus stockholders' equity, is the foundation of the balance sheet.