Value added
How much value the company created beyond what it bought in from others.
Value added is the difference between sales and the cost of materials, goods and services bought in. It is the value the company created with its own labour and capital, before wages, depreciation and tax.
For comparing companies it says more than revenue does. A reseller with high turnover and thin margins has little value added; a manufacturer or consultancy on the same sales has considerably more.
Where this figure comes from
Profit and loss statement, value added.
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