DEFINITION of '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.

  1. Produced Water

    Waste water generated during the production of oil and natural ...
  2. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
  3. Adjusted Book Value

    The adjusted book value is a measure of a company's valuation ...
  4. Liquidation Value

    The total worth of a company's physical assets when it goes out ...
  5. Palisades Water Index

    A stock market index that gauges the performance of global water ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Investing

    Four Interesting Ways to Invest in Water (PHO, CGW)

    The U.S. and many other countries are widely expected to invest in water infrastructure and equipment on an unprecedented scale over the next several years – ostensibly to make up for decades ...
  2. Investing

    Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze a company for investment.
  3. Investing

    Opportunities In The Emerging Market's Water Crisis

    Water scarcity and increasing demand caused by population growth is one of the most compelling long-term portfolio themes.
  4. Investing

    Book Value: How Reliable Is It For Investors?

    In theory, a low P/B ratio means you have a cushion against poor performance. In practice, it is much less certain.
  5. Investing

    Risks to Consider When Investing in Water

    Investing in water should be a lock. But water is volatile and could see as many risks as potential rewards.
  6. Investing

    5 Water Stocks To Tap Into

    An increase in population and pollution has made water a fragile resource.
  7. Investing

    Global Water Resources Trades Ex-Dividend Thursday (GWRS)

    Global Water will send its dividend payment on Oct. 31 to shareholders of record as of Oct. 17.
  8. Investing

    Is Water The Next Big Commodity?

    An increase in both population and pollution has made water a very fragile and important resource. Learn the key players.
  9. Investing

    Beverage Giants Blur Line Between Water and Soda

    With bottled water America's No. 1 beverage, firms are looking to more profitable variations.
  1. What is the difference between book value and carrying value

    Dig deeper into the definitions of carrying value and book value, and learn to differentiate between their various financial ... Read Answer >>
  2. What is the difference between economic value and market value?

    Learn about the differences between economic value and market value. Discover how they serve different purposes for businesses ... Read Answer >>
  3. What is "marginalism" in microeconomics and why is it important?

    Find out what economists mean by marginal utility or cost and why marginalism is such an important concept in microeconomic ... Read Answer >>
  4. How can particular scarcities benefit specific stocks?

    Learn about scarce resources, such as crude oil and water. Explore how companies that produce these resources have benefited ... Read Answer >>
  5. Why is market to market (MTM) accounting considered controversial?

    Understand why mark to market accounting has been a major point of controversy because it requires all assets to be valued ... Read Answer >>
  6. If the intrinsic value of a stock is significantly lower than the market price, should ...

    Discover how the intrinsic value and market price of a stock are related and why a stock that appears overvalued may still ... Read Answer >>
Hot Definitions
  1. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  2. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  3. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  4. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  5. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  6. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
Trading Center