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 ?
SIA's after-tax profit at the company level rose 5.7% to S$1.34 billion in the last financial year from S$1.27 billion in the 1999/2000 year.
Pankl's after-tax profit for this 15-month period amounted to EUR 2.8 million.
The net after-tax profit for these companies reached JD 1255.4 million (US$1757 billion) for the year 2007 in comparison with JD 609.6 million (US$853 million) for the year 2006, an increase of 40.5%.
After-tax profit for the airline company itself amounted to 920 million Singapore dollars, up 2% from the previous financial year.
13 July 2011 -- German lender Baader Bank (ETR:BWB) said its after-tax profit slumped to EUR4.9m (USD6.86m) in the first six months of 2011 from EUR10.8m in the corresponding period of 2010, dragged down by its performance in this year's second quarter.
Fabege AB (STO:FABG.ST) on Monday reported after-tax profit of SEK5,632m, or SEK34.05 per share, for the year 2017.
Preliminary results show that LBBW ended the first quarter of 2011 with an after-tax profit of EUR352m, up from EUR136m in the corresponding period of 2010.
(ADPnews) - Feb 25, 2010 - Austrian road transport telematics specialist Kapsch TrafficCom AG (WBAG:KTCG), or KTC, increased its after-tax profit up to EUR 19.5 million (USD 26.4m) in the first nine months of fiscal 2009/10 from EUR 12.7 million a year ago.
Property company Fabege AB (STO:FABG) on Thursday reported after-tax profit of SEK4,202m, or SEK24.40 per share, for the period from January 2017 to September 2017.
BANKING AND CREDIT NEWS-13 April 2010-Spain's Banco Etcheverria books EUR4.3m after-tax profit '09(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
ANZ National Bank, New Zealand's largest bank and a unit of Australia's ANZ Bank (NYSE: ANZ) (AX: ANZ), has reported an after-tax profit of USD210m in the three months to December 31, 2008 - down from the USD310m in the same period last year.
Fabege AB (STO:FABG) reported on Friday that its after-tax profit amounted to SEK2,001m, or SEK12.10 per share, for the period January 2017 to June 2017.