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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 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% Net profit before tax (pre tax profit)Net profit before tax (pre tax profit)The net profits of a company before they are reduced by Corporation Tax. Windfall profitWindfall profitA sudden unexpected profit uncontrolled by the profiting party. Profit sharing schemeProfit sharing schemeA scheme where part of a company's profits are paid to employees as a reward for loyalty and contribution to the company's success. The reward may be given via cash, shares or a combination of both. Zero profitZero profitA situation in which profit in an industry is zero, usually as a result of free entry and exit. It may, if firms are not identical, refer only to the marginal firm. And it always means zero excess profit, not that all returns to capital invested in the industry are zero. Further SuggestionsTrading profitExcess profit Profit sharing plan Profit Graph Unitised with profit endowment profit margin operating profit net profit Profitability index profit and loss statement (P&L) Profit taking net profit after tax Profit shifting Profit center Net profit margin profit taking Profit margin unitised with profits Realized profit (or loss) Profitability ratios Profit forecast Non profit endowment Gross profit Profit margin Profit maximizing |
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