profit

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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 ?
Pour Radouane, un jeune etudiant, [beaucoup moins que] il sera difficile de profiter des vacances pendant le mois de Ramadan.
Vous pouvez desormais transformer votre Moto Z en un projecteur fournissant une image de 70'' en toute simplicite et profiter de vos films preferes grace au Mods Moto Insta-Share.
Et d'ajouter que l'Allemagne va profiter de son poids au sein de l'Union europeenne et de la communaute internationale pour accorder davantage de soutien a l'Egypte au cours de la prochaine periode.
La capacite de la station de Tozeur est de 6 mille m3 pour 50 mille habitants et celle de Nefta de 4 mille m3 pour 20 mille habitants, alors que la station de Hazoua devra profiter a 5 mille habitants.
Le Doyen, auteur d'une victoire dans le derby algerois face a l'USMH, devra profiter de l'avantage d'evoluer a domicile devant ses supporters pour enchainer une autre bonne performance devant le nouveau promu.
L a reunion a affirme l'importance d'examiner les defis auxquels fait face le medias pour elaborer des solutions et des traitements appropries, soulignant l'importance de profiter des resultats et des decisions des commissions et divers medias et guidee par des etudes scientifiques et des experiences exterieures dans le travail de la commission.
Air France fait profiter ses passagers de cette nouvelle reglementation et leur offre la possibilite d'utiliser leurs appareils personnels, que l'avion soit en phase de roulage, de decollage, de croisiere ou d'atterrissage.
Une reussite totale pour les organisateurs vu la grande affluence des habitants de ces localites venus profiter des consultations medicales specialisees, des interventions chirurgicales qui se sont deroulees au niveau de l'hopital provincial de Zagora.
Le PM a egalement propose aux gouverneurs de profiter des vacances d'ete pour tirer profit des efforts des jeunes en faveur de la proprete des rues et des quartiers.
Il a indique avoir achete en 2009 une maison a Gammarth pres de la mer, pour y habiter et profiter de son emplacement pour stationner son yacht.
Neymar devrait profiter de l'interet de Manchester United pour doubler son salaire au Barca.
Bah Dar, 27 Avril (SUNA) -Le Secretaire executif de la Commission economique des Nations Unies pour l'Afrique Carlos Lopes a explique que l'Afrique est en besoin d'un developpement et de grands efforts de profiter de ses ressources pour assurer la securite , la stabilite et le developpement basant sur les Africains eux-memes .