|
|
Gross profit margin |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 takingProfit takingAction by short-term securities traders to cash in on gains created by a sharp market rise, which pushes prices down temporarily but implies an upward market trend. See: Ring the [cash] register. Profit 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. Directly Unproductive Profit-Seeking ActivitiesDirectly Unproductive Profit-Seeking ActivitiesActivities that have no direct productive purpose (neither increasing consumer utility nor contributing to production of a good or service that would increase utility) and are motivated by the desire to make profit, typically from market distortions created by government policies. Examples are rent seeking and revenue seeking. Term coined by Bhagwati (1982). Excess profitExcess profitProfit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital. Profit forecastProfit forecastA prediction of future profits of a company, which may affect investment decisions. Further Suggestionsprofit takingnet profit paper profit Profit operating profit Profitability index Profit maximizing Accumulated profits tax Profit shifting Profit sharing plan Pretax earnings or profits Trading profit Profit Range Not for profit profit margin Profitability ratios Operating profit margin Profit margin Net profit margin net profit before tax (pre tax profit) profit sharing scheme Non profit endowment Profit Table Realized profit (or loss) net profit after tax |
|
|
|