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Profit |
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ProfitRevenue minus cost. The amount one makes on a transaction.Profit Similar MatchesProfitability 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 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. Profit shiftingProfit shiftingThe use of government policies to alter the outcome of international oligopolistic competition so as to increase the profits of domestic firms at the expense of foreign firms. This is a key element of strategic trade policy. Profit GraphProfit 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. Paper profitPaper profitA profit which would become real if the shares held were sold at their current price. Further Suggestionsgross profitGross profit Profit forecast profit taking Excess profits tax Realized profit (or loss) Profit sharing plan Profit margin net profit after tax Gross profit margin profit and loss statement (P&L) Profit taking Net profit margin Profit Table Profit maximizing unitised with profits Directly Unproductive Profit-Seeking Activities Profit center Operating profit margin net profit before tax (pre tax profit) Profitability index Zero profit operating profit Trading profit net profit |
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