Net 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'.
Net profit marginNet profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.
Profits warningProfits warning
If 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.
Profit marginProfit margin
Operating profit as a percentage of sales (or turnover). To calculate profit margin, multiply operating profit by 100, and divide the result by turnover.Example: Company X made an operating profit of £500m on a turnover of £3,000m. Profit margin was therefore (500 x 100) / 3000= 16.66%Profit margin tells you about the underlying profitability of a company's trading activities, not whether it is actually making money for shareholders. Note that it is calculated before taking account of interest charges or tax.
Not for profitNot for profit
An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses.
Profit GraphProfit Graph
A 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.
Further SuggestionsExcess profits tax
net profit after tax
Pretax earnings or profits
Directly Unproductive Profit-Seeking Activities
unitised with profits
profit before tax
pre tax profit
Operating profit margin
Full with profit endowment
Gross profit margin
net profit before tax (pre tax profit)
Unitised with profit endowment