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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 MatchesProfit marginProfit marginIndicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as net profit margin. 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. Net profitNet profitThe gross profit of a company (total turnover of products sold less costs to purchase or manufacture) less all other expenses. When net profit figures are quoted, the author usually makes it clear whether the figure is before or after tax. In company accounts, the word 'net' is often dropped, so that you simply have 'Profit before tax' and Profit after tax'. Trading profitTrading profitThe profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. Profit maximizingProfit maximizingThe level of a variable or behavior that maximizes the profit of a firm. Further SuggestionsNet profit marginProfit Graph net profit before tax (pre tax profit) Profit forecast Accumulated profits tax operating profit Profitability index Unitised with profit endowment Excess profits tax Operating profit margin Profit Table profit and loss statement (P&L) profits warning Profit margin profit sharing scheme Book profit Profit profit before tax pre tax profit Non profit endowment paper profit net profit after tax Excess profit Profit shifting Realized profit (or loss) |
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