|
|
Profit center |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Profit centerA division of an organization held responsible for producing its own profits.Profit center Similar MatchesProfit and loss statement (P&L)Profit and loss statement (P&L)A set of accounts, usually prepared annually, which depict a company's trading performance and are normally read in conjunction with the balance sheet and cash flow data. The profit and loss account can broadly be shown as follows:Turnover (sales) less manufacturing costs (or cost of sales if for example a retailing company) = gross profit or lossGross profit plus any non-trading income less operating costs = operating profit Operating profit less interest payments on bank loans or loan stock = profit before tax (pre tax profit)Pre-tax profit, less tax = net profit after taxPart of the net profit after tax may be used to pay a dividend with the balance being retained within the business for future investment. Profitability ratiosProfitability ratiosRatios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. Profit marginProfit marginThe difference between what it costs to produce a product or service and the selling price. Pretax earnings or profitsPretax earnings or profitsNet income before federal income taxes are subtracted. 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. Further SuggestionsProfit Graphprofit before tax Directly Unproductive Profit-Seeking Activities Profit forecast paper profit Trading profit Excess profits tax net profit after tax Full with profit endowment Profit shifting Operating profit margin Profit margin profit taking net profit Zero profit net profit before tax (pre tax profit) Net profit margin pre tax profit Risk adjusted profitability Excess profit operating profit unitised with profits gross profit Windfall profit Unitised with profit endowment |
|
|
|