Capitalisation: related pages
EVA (Economic value added) The excess of actual returns over the minimum required by the suppliers of capital. Useful as a tool for evaluating management performance than for rather than for valuation.
ROIC Profit as a proportion of the total capital invested in a business rather than assets shown in the balance sheet.
Intangible assets Assets that do not have a definite form. They include goodwill, patents, trademarks and capitalised development costs.
Research and development Expenditure on researching and developing new products. Development costs are related to specific products and may be capitalised.
Residual value The value of the asset at the end of its useful life (for the purpose of depreciation), or at the end of a lease.
Copyright Graeme Pietersz © 2005-2019
