Net Realization Value (NRV) is the measure of a business’s profitability after all costs, taxes, and external factors are taken into account. It can be looked at as the sum total of a company’s economic value, minus its expenses and debts. To calculate NRV, take the gross realized value from sales and subtract any associated costs. This gives you a realistic figure that can be used to compare different companies and make informed decisions on investments. NRV can help inform smart long-term business strategies, giving investors peace of mind that their investment will have true value over time.
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