profit

(redirected from profitably)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 ?
Improved overall network performance and efficiency enable wireless carriers to profitably offer more services over the same bandwidth, at prices subscribers can afford.
On the table is how CO2 emissions, suspected as a culprit in global warming, can be profitably captured, managed and re-used in a beneficial manner to boost domestic oil production.
Elastic Path Software pioneered flexible ecommerce software that enables online retailers to attract and convert customers profitably.
We are excited to work with Auriemma Consulting Group in bringing a solution to the industry that will allow financial services companies to profitably comply with the new FACT Act provisions.
IN FACT, FVE MAY BE UNABLE TO OPERATE THESE HOSPITALS PROFITABLY AND FVE MAY LOSE MONEY IN THESE OPERATIONS.
As online advertising campaigns get more complex, the only reasonable way to profitably scale traffic acquisition efforts is to leverage technology that dynamically tunes campaign variables," says Mr.
SEATTLE -- MOD Systems, a leading provider of digital media delivery technology, today announced its content delivery platform for retailers, an enterprise software package that provides a complete solution for profitably delivering digital entertainment content to consumers.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company's ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company's ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector.
Tech Data's IBM One Team will help resellers conduct business more efficiently and profitably by providing a single point of contact for all their IBM solutions selling needs," said Pete Peterson, Tech Data's vice president, Systems Product Marketing.
By October of 2005, we decided to enter this market, and had detailed most of the workflows and processes we thought we needed to profitably run an On Demand Services business.