 |
Definition of 'Profit'
A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business.
Calculated as:
|
 |
Investopedia explains 'Profit'
Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every company's goal.
The path toward profitability can be long. For example, online bookseller Amazon.com was founded in 1994 and did not produce its first annual profit until 2003. Many start ups and new businesses fail when the owners run out of capital to sustain the business.
|
-
Determine whether your trading approach is only profitable on paper.
Read More »
-
Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
Read More »
-
This structure can be very effective, but it is also known for its abuse of power.
Read More »
-
|
|
