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Gross profit |
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Gross 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%Gross profitSales minus the cost of goods sold.Gross profit Similar MatchesUnitised with profitsUnitised with profitsWith-profits and investment-linked funds combined in the same contract with the choice of switching between them. ProfitProfitRevenue minus cost. The amount one makes on a transaction. Excess profitExcess profitProfit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital. Profits warningProfits warningIf a quoted company expects its profits figure to be lower than the consensus forecast of analysts who follow the stock, the directors are required to issue a profits warning. The warning is released via the Stock Exchange to ensure that all investors have access to the news at the same time. 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 SuggestionsProfit marginProfit margin Accumulated profits tax Full with profit endowment Profit taking Windfall profit Profit forecast Profit sharing plan paper profit operating profit Profitability ratios profit before tax Operating profit margin profit taking pre tax profit net profit Pretax earnings or profits Non profit endowment net profit before tax (pre tax profit) profit margin Risk adjusted profitability profit sharing scheme Profit Range Profitability index profit and loss statement (P&L) |
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