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Book profit |
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Book profitThe cumulative book income plus any gain or loss on disposition of assets.Book profit Similar MatchesGross profitGross profitThe difference between (i) turnover and (ii) the cost of making a product or providing a service, before taking into account overheads, salaries and wages, and interest payments.The logical step after calculating gross profit is to go on to calculate the gross profit margin, which is the gross profit as a percentage of turnover.Example: a company has turnover of £10m and the cost of providing its service is £5mits gross profit is £5mits gross profit margin is £5m / £10m x 100 = 50% Accumulated profits taxAccumulated profits taxA tax on earnings kept in a firm to prevent the higher personal income tax rate that would obtain if profits were paid out as dividends to the owners. Net profit after taxNet profit after taxThe net profits of a company after taxation. This is the 'bottom line' that you often hear about. Dividends are paid out of net profits after tax, and the amount that isn't paid out is the retained profit. Profit marginProfit marginIndicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as net profit margin. Net profitNet profitThe gross profit of a company (total turnover of products sold less costs to purchase or manufacture) less all other expenses. When net profit figures are quoted, the author usually makes it clear whether the figure is before or after tax. In company accounts, the word 'net' is often dropped, so that you simply have 'Profit before tax' and Profit after tax'. Further SuggestionsProfitability indexpaper profit profit sharing scheme profit margin Profit Graph profit before tax Non profit endowment profit and loss statement (P&L) Unitised with profit endowment Operating profit margin Net profit margin profit taking Profit sharing plan Profit forecast Profit shifting Profitability ratios Directly Unproductive Profit-Seeking Activities Trading profit Profit taking operating profit Profit maximizing Risk adjusted profitability Excess profits tax Pretax earnings or profits Zero profit |
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