capitalearned
Capitalearned is a term used in some financial discussions to describe the portion of a company’s capital base that has been generated through its own productive activities, rather than being supplied by external investors or lenders. It is often framed as a measure of value creation embedded in the firm’s retained earnings and reinvested capital.
Because capitalearned is not standardized across industries, its calculation varies by context. A common interpretation is
Uses and interpretation: capitalearned is used to assess how effectively a company converts operating success into
Limitations: because there is no universal standard for measuring capitalearned, comparisons can be distorted by accounting
See also: retained earnings, contributed capital, return on invested capital, capital gains.