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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 MatchesProfit marginProfit marginThe difference between what it costs to produce a product or service and the selling price. 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. 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. Operating profitOperating profitA company's profit after deducting its operating costs from gross profit. Operating profit marginOperating profit marginThe ratio of operating profit to net sales. Further SuggestionsProfit TableProfit center profit before tax net profit before tax (pre tax profit) Directly Unproductive Profit-Seeking Activities Profit taking Profit maximizing Trading profit Gross profit pre tax profit Unitised with profit endowment Windfall profit Book profit Profit sharing plan Net profit margin gross profit profits warning Profit profit taking unitised with profits Zero profit Profitability index Non profit endowment Pretax earnings or profits Full with profit endowment |
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