Gross Value Added - GVA

A productivity metric that measures the difference between output and intermediate consumption. Gross value added provides a dollar value for the amount of goods and services that have been produced, less the cost of all inputs and raw materials that are directly attributable to that production.

At the company level, this metric could be calculated to represent the gross value added by a particular product or service the company currently produces or provides. In other words, the GVA number reveals how much money the product or service contributed towards meeting the company's fixed costs and providing opportunity for a bottom-line profit.

Once the consumption of fixed capital and the effects of depreciation are subtracted, the company knows how much net value the operation adds to its bottom line.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Value added — refers to the additional value of a commodity over the cost of commodities used to produce it from the previous stage of production. An example is the price of gasoline at the pump over the price of the oil in it. In national accounts used in… …   Wikipedia

  • Value added tax — Taxation An aspect of fiscal policy …   Wikipedia

  • Gross Output — is an economic concept used in national accounts such as the United Nations System of National Accounts (UNSNA) and the US National Income and Product Accounts (NIPA). It is equal to the value of net output or GDP (also known as gross value… …   Wikipedia

  • Gross operating surplus — (GOS) is the surplus due to owners of incorporated businesses. Often called profits, although only a subset of total costs are subtracted from gross output to calculate the GOS.Essentially it is sales less the cost of intermediate goods and… …   Wikipedia

  • Value product — The value product (VP) is an economic concept formulated by Karl Marx in his critique of political economy during the 1860s, and used in Marxian social accounting theory for capitalist economies. Its annual monetary value is approximately equal… …   Wikipedia

  • Gross state product — (or gross regional product) is a measurement of the economic output of a state or province. It is the sum of all value added by industries within the state and serves as a counterpart to the gross domestic product or GDP.Conceptually, there is no …   Wikipedia

  • gross domestic product — GDP The monetary value of all the goods and services produced by an economy over a specified period. It is measured in three ways: (1) on the basis of expenditure, i.e. the value of all goods and services bought, including consumption, capital… …   Accounting dictionary

  • gross up — To convert a net amount into its equivalent gross amount. For example, an amount payable net of 17.5% value added tax would be grossed up to the amount payable including 17.5% value added tax, i.e. by multiplying the net amount by 1.175 …   Accounting dictionary

  • gross domestic product — GDP The monetary value of all the goods and services produced by an economy over a specified period. It is measured in three ways: • (1) on the basis of expenditure, i. e. the value of all goods and services bought, including consumption, capital …   Big dictionary of business and management

  • gross margin — margin, gross margin, net margin, security margin, variation margin (1) An amount of cash or collateral that a buyer or borrower must provide in excess of value owed to that buyer or borrower by a seller, lender or depositor. Ensures performance… …   Financial and business terms

  • gross up — To add back to the value of the property or income received the amount of the tax that has been paid. For gifts made within three years of death, any gift tax paid on the transfer is added to the gross estate. I.R.C. No. 2035. Process by which… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.