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 ?
Giant Group's combined revenues reached NT$14.683 billion (US$489.43 million) in the third quarter, rising 10% quarter on quarter (QoQ); and its after-tax profits hit NT$882 million (US$29.4 million), increasing 15% QoQ.
The firm's combined revenues in the third quarter reached NT$16 billion (US$53.33 million), rising 6% quarter on quarter (QoQ), with after-tax profits and pre-tax profits of NT$481 million (US$16.03 million) and NT$460 million (US$15.33 million), respectively, earning per share (EPS) of NT$0.51 (US$0.017) due to steady non-operating income of NT$200 million (US$6.66 million).
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$17.771 billion (US$592.37 million) in the first nine months, with EPS of NT$1.55 (US$0.052), the second highest.
UPCH's 2011 revenues reached renminbi (RMB) 16.932 billion or about NT$ 84.66 billion (US$ 2.822 billion), up about 30% YoY, with after-tax profits of RMB 312 million or about NT$ 1.56 billion (US$ 52 million).
NT$ 29.2 billion (US$ 973.3 million), up 13.6% YoY; combined after-tax profits hit NT$ 910 million (US$ 30.3 million); pre-tax profit was NT$ 1.13 billion
scored after-tax profits of NT$1.88 billion (US$62.67 million) in May, bringing its total profits to NT$10.13 billion (US$337.67 million) in the first five months with earnings per share (EPS) of NT$1.12 (US$0.037), the highest among Taiwan's 15 financial holding companies (FHCs).
saw the highest after-tax profits of NT$1.935 billion (US$64.5 million), which rose to NT$8.6 billion (US$286.67 million) in the first four months with EPS of NT$0.76 (US$0.025), next only to Fubon.
Last year the company generated after-tax profits of NT$770 million (US$25.67 million) with EPS of NT$3.87 (US$0.13), which is predicted to jump to NT$5-6 (US$0.17-0.2) this year.
Last year Makalot posted after-tax profits of NT$1.11 billion (US$37 million) for a sharp annual growth of 20.9% and earnings per share (EPS) of NT$6.92 (US$0.23).
In the first three quarters of 2011, Johnson Health scored after-tax profits of NT$469 million (US$15.63 million) with EPS of NT$2.36 (US$0.079), with good sales in the fourth quarter to boost the full-year revenues to NT$13.68 billion (US$456 million) for a sharp annual rise of 16.4%.
10, 2011 (CENS) -- Driven by orders from foreign buyers preparing for the 2012 London Olympics, Pou Chen Corp., a major Taiwanese manufacturer of sports shoes, posted after-tax profits of NT$3.873 billion (US$129.1 million) in the third quarter, with earning per share (EPS) of NT$0.66 (US$0.022) for a sharp quarterly growth of 60.97%.
In the first three quarters Makalot generated revenues of NT$10.77 billion (US$359 million) with after-tax profits of NT$835 million (US$27.83 million) or EPS of NT$5.22 (US$0.174), slightly down by NT$0.2 (US$0.0067) from that of last year.