profit

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Related to After-Tax Profits: Pre-Tax Profits

Profit

Revenue minus cost. The amount one makes on a transaction.

Profit

A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer earns $1,000,000 in total revenue. The widgets cost $200,000 to make and his administrative and payroll expenses total $250,000. He also must subtract $50,000 in depreciation on his widget manufacturing equipment and pay $200,000 in taxes. His net income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000.

profit

Profit.

Profit, which is also called net income or earnings, is the money a business has left after it pays its operating expenses, taxes, and other current bills.

When you invest, profit is the amount you make when you sell an asset for a higher price than you paid for it. For example, if you buy a stock at $20 a share and sell it at $30 a share, your profit is $10 a share minus sales commission and capital gains tax if any.

profit

the difference that arises when a firm's SALES REVENUE is greater than its total COSTS. GROSS PROFIT is the difference between SALES REVENUE and the COST OF SALES, while NET PROFIT is equal to gross profit less selling distribution, administration and financing costs. PROFIT AFTER TAX is the net profit attributable to shareholders after taxes have been paid.

Profit depends on two main factors:

  1. average profit margins or profit per £1 of sales. If costs increase the profit margins will be squeezed; if competition forces selling prices downward margins will be similarly squeezed, and vice versa;
  2. sales turnover. Any increase in sales value will tend to increase profits. See PROFIT AND LOSS ACCOUNT.

profit

the difference that arises when a firm's TOTAL REVENUE is greater than its TOTAL COSTS. This definition of‘economic profit’ differs from that used conventionally by businessmen (accountingprofit) in that accounting profit takes into account only explicit costs. Economic profit can be viewed in terms of:
  1. the return accruing to enterprise owners (entrepreneurs) after the payment of all EXPLICIT COSTS (payments such as wages to outside factor-input suppliers) and all IMPLICIT COSTS (payments for the use of factor inputs - capital, labour - supplied by the owners themselves);
  2. a residual return to the owner(s) of a firm (an individual ENTREPRENEUR or group of SHAREHOLDERS) for providing capital and for risk-bearing;
  3. the ‘reward’ to entrepreneurs for organizing productive activity, for innovating new products, etc., and for risk taking;
  4. the prime mover of a PRIVATE ENTERPRISE ECONOMY serving to allocate resources between competing end uses in line with consumer demands;
  5. in aggregate terms, a source of income and thus included as part of NATIONAL INCOME. See also PROFIT MAXIMIZATION, NORMAL PROFIT, ABOVE-NORMAL PROFIT, RISK AND UNCERTAINTY, NATIONAL INCOME ACCOUNTS.
References in periodicals archive ?
When he said that "my after-tax profits go to a foundation that supports integrative medicine," he could have mentioned that the foundation's "primary beneficiary" is Weil's own program at the University of Arizona.
After-tax profits of Indus Motors Company - which produces Toyota Motor vehicles - slipped to pounds 2.
43 million) in the third quarter, rising 10% quarter on quarter (QoQ); and its after-tax profits hit NT$882 million (US$29.
33 million), rising 6% quarter on quarter (QoQ), with after-tax profits and pre-tax profits of NT$481 million (US$16.
M Best believes the company is likely to achieve a combined ratio of approximately 91%, translating into after-tax profits of approximately EUR 90 million (USD 115 million) and a return on net premiums of approximately 8% as the company is expected to limit its property and natural catastrophe exposure and focus more on personal lines.
Thanks to profits of about NT$300 million (US$10 million) posted by its two securities firms in September, Mega Financial Holding saw after-tax profits expand to NT$17.
The Company's investment services segment continued to show significant earnings growth during the third quarter, as after-tax profits rose to $47.
He devotes 100% of the after-tax profits from his website and his Lifestyle products to fund the Weil Foundation.
822 billion), up about 30% YoY, with after-tax profits of RMB 312 million or about NT$ 1.
AMERICAN EDUCATIONAL PRODUCTS QUARTERLY SALES SURGE 102 PCT; OPERATING PROFIT CLIMBS 103 PCT FOR FIRST 6 MONTHS, AFTER-TAX PROFITS GROW 38 PCT
6% YoY; combined after-tax profits hit NT$ 910 million (US$ 30.
Holahan said after-tax profits should approximate $525,000, as contrasted with last year's profits of $136,000.