Investor Glossary-value-addedInvestor Glossary-value-addedInvestor Glossary-value-addedInvestor Glossary-value-addedInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value-added

The HTML to link to this page
 

Value-added is used in several ways to indicate an enhancement to a product or an entity. By one definition, value-added is the difference between the cost of materials purchased by a firm and the price at which it sells the goods that use those materials. In a related usage, a value-added tax, common in Europe, is a levy on goods or service based on the increase in price, or value-added, at each point of the production cycle. As a management technique, companies seek to provide additional value-added in their products as a way of distinguishing them from competitors; value-added in this sense is a means of avoiding commoditization and maintaining profit margins. Finally, economic value-added is used as a measuring rod in financial analysis. While variously calculated, economic value-added attempts to find how much more valuable a company is at the end of a period than it was at the start of it.



Rate this value-added definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use