Above Water

1. Refers to the condition of a company’s asset when its actual value is higher than the book value used in its financials.

2. Financially referring to a person staying out of economic trouble or a company remaining financially viable.

1. Generally, the book value of an asset listed in a company's balance sheet cannot be adjusted according to Generally Accepted Accounting Principles (GAAP). Should the asset appreciate, its market value would be "above water". A company with above water assets tends to attract value investors. This is because of the hidden value that most investors won't discover if they don't look beyond the financials. For example, if a company purchased a piece of land for $100,000 and the company later discovered an oil reserve on the property, the market value of the land would increase and be above water, because the book value would remain at $100,000.

2. Used in the context of "keeping their head above water" symbolizing the ability to stay alive. For example, company XYZ kept its head above water with an increase in profit even though its revenue dropped.


Investment dictionary. . 2012.

Look at other dictionaries:

  • above water — adverb : out of difficulty or embarrassment an island that still depends on smuggling to keep the economy above water David Butwin * * * above water Out of difficulties, esp financial • • • Main Entry: ↑water …   Useful english dictionary

  • above water — adverb Out of difficulty, especially financial. Ant: under water See Also: keep ones head above water …   Wiktionary

  • above water — above the surface of the water; out of danger, not at risk …   English contemporary dictionary

  • above-water — above wa·ter …   English syllables

  • above-water —  ̷ ̷| ̷ ̷| ̷ ̷ ̷ ̷ adjective 1. : above the surface of the water 2. : above the waterline of a ship …   Useful english dictionary

  • above water — phrasal out of difficulty …   New Collegiate Dictionary

  • above water — Synonyms and related words: all clear, all straight, at anchor, clear, free and clear, high and dry, in harbor, in safety, in the clear, on, out of danger, out of debt, past danger, solvent, terra firma, under cover, unindebted, unowing …   Moby Thesaurus

  • To keep one's head above water — Water Wa ter (w[add] t[ e]r), n. [AS. w[ae]ter; akin to OS. watar, OFries. wetir, weter, LG. & D. water, G. wasser, OHG. wazzar, Icel. vatn, Sw. vatten, Dan. vand, Goth. wat[=o], O. Slav. & Russ. voda, Gr. y dwr, Skr. udan water, ud to wet, and… …   The Collaborative International Dictionary of English

  • keep one's head above water — {v. phr.} To remain solvent; manage to stay out of debt. * /Herb s income declined so drastically that he now has difficulty keeping his head above water./ …   Dictionary of American idioms

  • keep one's head above water — {v. phr.} To remain solvent; manage to stay out of debt. * /Herb s income declined so drastically that he now has difficulty keeping his head above water./ …   Dictionary of American idioms

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