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Related to profits: Accounting 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 ?
There is no doubt that the total profits of the large oil companies have been high of late, though even the recent industry profit margins are close to the national average.
all ordinary and necessary expenses in connection with the activity are allowed in determining whether the activity generated a profit or loss) .
The multi-price mindset will enable your company to price for profits and growth.
Due to both their size and private ownership, suppliers pay an illiquidity premium, raising their cost of capital and thereby increasing the requirement to make higher profits in order to continue to fund their growth.
Insurance company profits tend to increase as the volume of sales increases (thus neutralizing fixed costs), and it would be appropriate for the insurance company to share some of these profits with the distributor that helped create them.
It's a night when Profit feels he's doomed to become the first former professional athlete to turn down a home-cooked meal.
There is a profound difference between public agencies and those organized to produce private profits.
This is easy to do when using your company's own profits as an objective.
Under this concept, the marketing department can be considered a contribution center, since it is charged with making the maximum contribution to profit and to the costs that it doesn't actually control, rather than being charged with bottom-line profits alone.
The limitation on the use of the profit-split method under the regulations will effectively force taxpayers to use the comparable profits or an "other" method when comparables are unavailable.
Nasdaq: LUFK) satisfies the criteria for this Profit Track as evidenced by its year-over-year earnings per share growth of 193% and its net margin of 0.
93-27 defines a profits interest as an interest other than a capital interest.