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 ?
Grace a l'interface et aux recommandations musicales personnalisees des la premiere d'utilisation, les fans de musique peuvent profiter d'un acces sans precedent a la musique qu'ils aiment et a celle qu'ils n'ont pas encore decouvert.
[beaucoup moins que]J'etais oblige d'economiser une somme d'argent durant l'annee, malgre les autres depenses de Ramadan pour que je puisse profiter des vacances de cette annee[beaucoup plus grand que], confie Aziz, administrateur.
M.Wagdi a indique a l'importance de la mise des plans et strategies favorable a l'exportation en mettant l'accent sur les marches voisins et la reactivation des accords et de profiter de l'aspect geographique pour augmenter l'echange commercial avec ces pays .
A cet effet, le depute Dr Abdel Azim Mahmoud a soumis un rapport sur l'importance d'exploiter les richesses minieres, de resoudre les problemes de ce secteur et profiter de ces richesses comme ressources au revenu national.
Deux heureux gagnants seront tires au sort pour vivre une experience unique et profiter d'un moment privilegie avec leur star preferee.
Chacun restait chez soi pour profiter de l'atmosphere familiale.
Le Doyen, auteur d'une victoire dans le derby algerois face a l'USMH, devra profiter de l'avantage d'evoluer a domicile devant ses supporters pour enchainer une autre bonne performance devant le nouveau promu.
Pour sa part, la delegation de la Federation des hommes d'affaires a affirme l'importance de travailler ensemble pour profiter des capacites des fils du Soudan , en particulier les hommes d'affaires a l'appui de la reforme economique et l'activation du role des institutions economiques pour l'interet du citoyen et de l'Etat en renouvelee la determination a mobiliser les energies pour participer dans la production et l'augmentation des exportations afin de soutenir l'economie nationale.
Les secteurs qui devront mieux profiter de plus de liberalisation sont les fruits et legumes qui verront leur valeur ajoutee s'ameliorer de +4% et les services avec +1%.
Pour votre dernier jour de week-end, n'hesitez pas a changer d'air et a profiter de cette derniere semaine du mois de Ramadan.
Summary: La Tunisie devrait accelerer le processus d'accreditation des entites nationales pour faciliter l'acces aux financements du Fond Vert pour le Climat (FVC) et profiter davantage de l'argent qu'il va recevoir,
Neymar devrait profiter de l'interet de Manchester United pour doubler son salaire au Barca.