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Profit center |
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Profit centerA division of an organization held responsible for producing its own profits.Profit center Similar MatchesProfit 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. 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'. Operating profit marginOperating profit marginThe ratio of operating profit to net sales. Profit maximizingProfit maximizingThe level of a variable or behavior that maximizes the profit of a firm. Risk adjusted profitabilityRisk adjusted profitabilityA probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. Further Suggestionspre tax profitProfit forecast Full with profit endowment Not for profit Profit Range profit before tax Non profit endowment Excess profits tax Profit Table profit taking Trading profit Profit taking Profit sharing plan Directly Unproductive Profit-Seeking Activities profit and loss statement (P&L) paper profit Windfall profit Zero profit Profitability ratios Gross profit margin Profit margin Gross profit unitised with profits Pretax earnings or profits net profit after tax |
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