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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 GraphProfit GraphA graphical representation of the potential outcomes of a strategy. Dollars of profit or loss are graphed on the vertical axis, and various stock prices are graphed on the horizontal axis. Results may be depicted at any point in time, although the graph usually depicts the results at expiration of the options involved in the strategy. Unitised with profitsUnitised with profitsWith-profits and investment-linked funds combined in the same contract with the choice of switching between them. 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). Gross 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 marginNet profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses have been paid. Further SuggestionsBook profitnet profit profit and loss statement (P&L) Profit margin Profit shifting Accumulated profits tax Profit maximizing Trading profit Profitability ratios Operating profit margin operating profit Non profit endowment Profit margin Unitised with profit endowment Zero profit Excess profits tax Profit profit taking pre tax profit paper profit Profit Table Excess profit profit sharing scheme Profit Range profit margin |
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