Profit after interest

Edwin Whiting

Chapter 9 in A Guide to Business Performance Measurements, 1986, pp 99-110 from Palgrave Macmillan

Abstract: Abstract There are two definitions of the interest that may be deducted from profit before interest to arrive at profit after interest: (1) Interest actually payable in a period by a company or division on the loans and bank overdraft advanced to it. (2) Interest that would normally be payable if the company or division were financed entirely by loans at market rates of interest or at a rate that would have some relation (for a division) to the overall cost of finance to the group.

Keywords: Interest Rate; Average Cost; Market Rate; Residual Income; Share Capital (search for similar items in EconPapers)
Date: 1986
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DOI: 10.1007/978-1-349-07472-3_9

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