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Net profit |
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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'.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. Gross profit marginGross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. Profit marginProfit marginOperating 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. Profit 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 profit endowmentUnitised with profit endowmentThis is a hybrid unit-linked endowment, designed to smooth out price fluctuations that occur with unit-linked policies. The value of units is declared each year and that value is then guaranteed. The guaranteed value that is declared is at a discount to the actual value of the units. The guaranteed value will not reach the real value until the term of the endowment is up, so the chance of being able to pay of the loan early is minimised. Further Suggestionsgross profitProfit forecast Profit pre tax profit Operating profit margin Excess profit Zero profit Profit shifting Profitability index Profit taking profit sharing scheme Not for profit operating profit Profit maximizing Full with profit endowment Gross profit Profit Table Non profit endowment Excess profits tax Profitability ratios Profit center Risk adjusted profitability Realized profit (or loss) net profit after tax profits warning |
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