Definition of Residual income:
Net profit that can be earned by investing more than the minimum profit (interest rate on temporary deposits).
The rest of the income is a convention above the minimum return rate. Outstanding revenue is an internal measure of business performance that the company's management team uses to estimate the company's earnings compared to the minimum required performance. However, in the area of personal finance, residual income is equal to the level of income of a person for whom compensation and personal expenses are paid.
Proceeds from licensing fees paid to intellectual property owners such as fine arts, finance, music, patents, etc.
Outstanding revenues measure net income, taking into account the cost of capital required to produce that income. Other conditions for outstanding income include economic value, economic benefits and extraordinary income.
How to use Residual income in a sentence?
- If your residual income is good, you may run certain risks with the funds you have raised.
- The remaining operating result is the remaining profit after payment of all capital expenditures. .
- In a capital appraisal, capital expenditures are calculated as capital multiplied by the cost of capital. .
- Examples of outstanding income include real estate, stocks, bonds, investment accounts and royalties.
- Residual income is often called passive income for an individual or company. .
- The rest of the personal income is not the result of work or hours of work. The primary purpose of generating sustainable income requires an initial investment of money or time.
- The rest of the investment income continues to flow, which is a pleasant surprise for a small forgotten investment.
- He wanted to know if we had any tax revenue after our holiday.
Meaning of Residual income & Residual income Definition