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 ?
Simply by introducing one additional variable (the inflation rate) into the model, one can achieve greater accuracy and flexibility in the calculation of after-tax awards by indexing the tax structure to the inflation rate rather than the earnings growth rate, allowing the before-tax earnings growth rate to differ from the inflation rate, and allowing the before-tax earnings growth rate to differ from the after-tax earnings growth rate, which in fact is a usual result of progressive taxation.
The intention is to make the plaintiff "whole" in the sense that the award allows the plaintiff, through investment in relatively safe securities, to replicate over time the lost after-tax earnings stream.
Excluding the $36.9 million one-time TCJA charge, $33.4 million of hurricane expense, and $25.7 million of merger expenses associated with the 2017 acquisitions offset by $3.8 million of one-time non-taxable gain on acquisition, 2017 annual after-tax earnings excluding non-fundamental items were $204.8 million, an increase of 15.7% from 2016 annual after-tax earnings excluding non-fundamental items of $177.0 million.
2016 was the second-best year in company history for after-tax earnings, is the first year we have topped $300,000,000 in annual revenue, our return on equity topped 15%, we accomplished the acquisition of First Guaranty Insurance Company, we settled a longstanding dispute with the Department of Justice relating to mortgage loans originated prior to 2008, and we settled two suits involving the bankrupt Lehman Brothers.
(5.) Kellogg's after-tax earnings for the most recent quarter were
The group reported after-tax earnings of USD15.0m on operating revenues of USD309.1m and the total operating revenues for Q4 2005 increased by USD49.1m or 18.9%.
A tax professional must work with the numbers in each situation to determine a break-even point; thus, planning should envision careful forecasting of disbursements, for the corporation to maximize its after-tax earnings and distribute them to shareholders.
After-tax earnings rose 22 per cent to 9p per share, supporting a dividend up 20 per cent to 2.1p.
The company estimates the restructuring will result in approximately $6.1M of after-tax earnings accretion in 2019 and that the payback period of the loss will be approximately two and a half years.
The cut in the federal corporate tax rate will negatively impact Home's fourth quarter 2017 results but is expected to positively impact Home's future after-tax earnings. As of December 31, 2017, the Company performed a preliminary analysis to determine the impact of the revaluation of the deferred tax asset of approximately $113.5 million.
Second quarter results include after-tax earnings of $38 million from discontinued operations.
The company registered NT$2.38 in after-tax earnings per share in the first quarter, lower than market expectations, but achieved Q1 gross profit margin of 43.58%, compared to 39.16% a year earlier, indicting higher production efficiency.