Economic profit measures a firm’s profit from current operations minus the opportunity cost of capital. It demonstrates how much surplus a firm’s current operations generates after taking account of the capital tied up in the business.
Corporate distress provides insights into the financial health of firms based on publicly available accounting data. The interest coverage ratio indicates if a firm is a “zombie” while the Z’’-score expresses the likelihood a firm will go bankrupt.
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Economic Profit (aggregate)
The total amount of economic profit expressed in current USD is one way of quantifying the total value creation of an economy’s (sector’s) publicly-listed firms. Total economic profit is the sum of economic profit generated by individual firms and, thus, may be driven by the value creation of each firm as well as the number of listed firms. As additional information, the download option includes the traditional reported accounting profit (aggregate) expressed in current USD.
Economic Profit (median)
The median amount of economic profit generated within an economy (sector) allows to draw conclusions about the average level of value creation from the current operations of firms in that economy (sector). When converted into current USD this average can be compared across countries. As additional information, the download option includes the traditional reported accounting profit (median) expressed in current USD.