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 ?
"We expect that the group will continue to trade profitably for the second half of this year, particularly as a result of our UK and Tanzanian operations.
With regard to Guess, she added: "Metquarter turnover showed the tenant traded profitably from Metquarter, but its head office was not prepared to extend credit terms to provide the store with the new autumn and winter collections."
"Speciality Papers continues to trade profitably, albeit at a lower level than in the first half of the financial year because of the rising cost of pulp," Mr Cropper said.
As a result, CBAC Authorized Lenders can profitably originate a much greater volume of small balance commercial loans--an important competitive advantage as the residential mortgage market cools.
Since most plants are busy, we are focused on how well and how profitably we produce our metal castings.
also offers a glimpse into Lee's personality through chosen quotes, such as Lee's admonishment to a young man who thought his time in the army was wasted: "However long you live and whatever you accomplish, you will find that the time you spent in the Confederate army was the most profitably spent portion of your life." Black-and-white as well as color photographs and illustrations add a visual touch to this faithful and highly accessible chronicle of Robert E.
They can only work profitably by doing low-quality work, and fitting inferior and much cheaper crowns, which ethical dentists do not want to do.
From estimating start-up costs and finding clients to outfitting a kitchen profitably, chapters cover everything form CD-ROM recipe books to culinary web sites and specialty planning, showing how to avoid common mistakes, using portion size charts, and more.
Sue Reece of SMD Hydrovision, said: "We hope to trade profitably enough to keep this up in future years."
Shigeki: They're too expensive to run profitably and many are now in a state of advanced disrepair.
Readers will learn how Lease-Options work to simply and safely build an investment portfolio; how to generate steady, spendable cash flow through Lease-Options; finding the right real estate market to safely invest in for a reliable return; profitably manage properties while avoiding ongoing maintenance expenses eating into the bottom line; recruiting the right management team to build and guard a real estate based investment portfolio; even how to invest in a Lease Option investment strategy without the necessity of owning property.
(A look at the recurrent conflicts around the forty four "natural regional parks" covering some thirteen percent of the national territory would, for instance, have profitably replaced speculations on the village that never was and our cosmic frontier.)