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Profit Graph |
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Profit 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.Profit Graph Similar MatchesGross 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% Directly Unproductive Profit-Seeking ActivitiesDirectly Unproductive Profit-Seeking ActivitiesActivities that have no direct productive purpose (neither increasing consumer utility nor contributing to production of a good or service that would increase utility) and are motivated by the desire to make profit, typically from market distortions created by government policies. Examples are rent seeking and revenue seeking. Term coined by Bhagwati (1982). Profit sharing planProfit sharing planAn incentive system providing that employees share in company profits through a cash fund or a deferred plan used to buy stock or bonds. Zero profitZero profitA situation in which profit in an industry is zero, usually as a result of free entry and exit. It may, if firms are not identical, refer only to the marginal firm. And it always means zero excess profit, not that all returns to capital invested in the industry are zero. Pre tax profitPre tax profitSee: 'profit before tax'. Further SuggestionsProfit marginnet profit before tax (pre tax profit) Excess profits tax Realized profit (or loss) Risk adjusted profitability Profit Range profit before tax Profit forecast unitised with profits Windfall profit Book profit Accumulated profits tax Trading profit Unitised with profit endowment profits warning Profit Profit shifting Non profit endowment profit margin Profitability ratios net profit after tax Gross profit Not for profit Profit margin paper profit |
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