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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 TableProfit TableA table of results of a particular strategy at some point in time. This is usually a tabular compilation of the data drawn on a profit graph. See also Profit Graph. Profitability indexProfitability indexThe present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. Profit RangeProfit RangeThe range within which a particular position makes a profit. Generally used in refernce to strategies that have two break-even points - an upside break-even and a downside break-even. The price range between the two break-even points would be the profit range. Profit marginProfit marginOperating profit as a percentage of sales (or turnover). To calculate profit margin, multiply operating profit by 100, and divide the result by turnover.Example: Company X made an operating profit of £500m on a turnover of £3,000m. Profit margin was therefore (500 x 100) / 3000= 16.66%Profit margin tells you about the underlying profitability of a company's trading activities, not whether it is actually making money for shareholders. Note that it is calculated before taking account of interest charges or tax. Pre tax profitPre tax profitSee: 'profit before tax'. Further Suggestionsnet profit before tax (pre tax profit)net profit after tax profit taking Profit forecast net profit Excess profit Profit maximizing Non profit endowment Profit sharing plan gross profit Profit shifting Profit Profit margin Windfall profit profits warning Trading profit Profit taking unitised with profits operating profit Full with profit endowment Realized profit (or loss) profit before tax Profit Graph Operating profit margin Risk adjusted profitability |
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