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Profit before tax |
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Profit before taxA company's net profit before deduction of corporation tax.Similar MatchesProfit RangeProfit RangeThe range within which a particular position makes a profit. Generally used in refernce to strategies that have two break-even points - an upside break-even and a downside break-even. The price range between the two break-even points would be the profit range. Profit takingProfit takingThe selling of shares when the price has risen, in order to crystallise trading profits. 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'. 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. Profitability indexProfitability indexThe present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. Further SuggestionsFull with profit endowmentgross profit unitised with profits Non profit endowment net profit after tax Realized profit (or loss) profit and loss statement (P&L) Book profit Gross profit margin Net profit margin Profit sharing plan Gross profit Risk adjusted profitability Profit Table profit sharing scheme Excess profit operating profit Pretax earnings or profits Not for profit Unitised with profit endowment Profit center Profit Graph Zero profit paper profit Profit forecast |
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