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Gross profit margin |
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Gross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.Gross profit margin Similar MatchesProfit and loss statement (P&L)Profit and loss statement (P&L)A set of accounts, usually prepared annually, which depict a company's trading performance and are normally read in conjunction with the balance sheet and cash flow data. The profit and loss account can broadly be shown as follows:Turnover (sales) less manufacturing costs (or cost of sales if for example a retailing company) = gross profit or lossGross profit plus any non-trading income less operating costs = operating profit Operating profit less interest payments on bank loans or loan stock = profit before tax (pre tax profit)Pre-tax profit, less tax = net profit after taxPart of the net profit after tax may be used to pay a dividend with the balance being retained within the business for future investment. Operating profitOperating profitA company's profit after deducting its operating costs from gross profit. Profit before taxProfit before taxA company's net profit before deduction of corporation tax. 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. Risk adjusted profitabilityRisk adjusted profitabilityA probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. Further SuggestionsTrading profitNet profit margin unitised with profits Profit sharing plan Windfall profit net profit before tax (pre tax profit) Profit maximizing Profit Range Profit Graph Profit center pre tax profit Profit Table Unitised with profit endowment paper profit Profit forecast Profitability ratios Realized profit (or loss) profit sharing scheme Profit margin Accumulated profits tax Zero profit Non profit endowment Gross profit Pretax earnings or profits Profit |
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