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Pre tax profit |
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Pre tax profitSee: 'profit before tax'.Similar MatchesProfitability indexProfitability indexThe present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. Net profit marginNet profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses have been paid. 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% Profit 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. 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. Further SuggestionsProfit RangeZero profit profit taking Unitised with profit endowment Operating profit margin Pretax earnings or profits net profit before tax (pre tax profit) paper profit Excess profits tax Profitability ratios Profit Table Profit sharing plan Accumulated profits tax Gross profit Full with profit endowment Trading profit net profit after tax Windfall profit profit before tax Excess profit Realized profit (or loss) Profit unitised with profits Risk adjusted profitability Profit taking |
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