Residual Income in Financial Accounting Formulas

Residual Income provides a way to assess how well a company is generating returns above its cost of capital. And is denoted by RI.

Formulas to find Residual Income in Financial Accounting

fxResidual IncomeGo

fx Operating Income Go

fx Minimum Required Rate of Return Go

fx Average Operating Assets Go

What is the Residual Income?

Residual Income provides a way to assess how well a company is generating returns above its cost of capital.

Can the Residual Income be negative?

{YesorNo}, the Residual Income, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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