PROFITS Meaning and
Definition
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Profits, in the realm of finance and economics, refer to the excess amount gained when revenues generated from a business activity surpass the costs and expenses associated with that activity. It is a measure of financial gain and represents the ultimate goal for most organizations.
Profit can be calculated by deducting total expenses from total revenues. It serves as a key indicator of a company's financial health and performance. This surplus amount contributes to the growth and sustainability of a business, enabling it to invest in further opportunities, expand operations, and distribute returns to shareholders.
Profits are essential for business owners as they serve as a reward for their investment and risk-taking. Furthermore, profits are crucial for job creation, stimulating economic growth, and contributing to society as a whole.
There are different types of profits, including gross profit, operating profit, and net profit. Gross profit represents the difference between sales revenue and the direct cost of producing the goods or services, while operating profit is calculated by subtracting both direct and indirect expenses. Net profit further subtracts taxes, interest, and other non-operating costs to provide a more accurate picture of an organization's profitability.
In conclusion, profits are the positive financial outcome achieved when revenues exceed costs. They are a vital component in the success and sustainability of a business, serving as a significant metric for evaluating its financial performance and enabling further growth and development.
Top Common Misspellings for PROFITS *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for PROFITS
Etymology of PROFITS
The word profits originated from the Latin term proficere, which can be broken down into two parts: pro meaning forth or forward, and facere meaning to make or to do. Over time, the Latin word evolved into profitus, which was later borrowed into Old French as profit. From Old French, it entered Middle English as profyt and eventually became the modern English word profits.
Similar spelling words for PROFITS
- profitt,
- probity,
- profitably,
- proffitt,
- profitable,
- profiteer,
- proffit,
- profit,
- previte,
- prefatory,
- privitera,
- profitless,
- propitious.
Conjugate verb Profits
CONDITIONAL
I
would profit
we
would profit
you
would profit
he/she/it
would profit
they
would profit
FUTURE
I
will profit
we
will profit
you
will profit
he/she/it
will profit
they
will profit
FUTURE PERFECT
I
will have profitted
we
will have profitted
you
will have profitted
he/she/it
will have profitted
they
will have profitted
PAST
I
profitted
we
profitted
you
profitted
he/she/it
profitted
they
profitted
PAST PERFECT
I
had profitted
we
had profitted
you
had profitted
he/she/it
had profitted
they
had profitted
PRESENT
I
profit
we
profit
you
profit
he/she/it
profits
they
profit
PRESENT PERFECT
I
have profitted
we
have profitted
you
have profitted
he/she/it
has profitted
they
have profitted
I
am profitting
we
are profitting
you
are profitting
he/she/it
is profitting
they
are profitting
I
was profitting
we
were profitting
you
were profitting
he/she/it
was profitting
they
were profitting
I
will be profitting
we
will be profitting
you
will be profitting
he/she/it
will be profitting
they
will be profitting
I
have been profitting
we
have been profitting
you
have been profitting
he/she/it
has been profitting
they
have been profitting
I
had been profitting
we
had been profitting
you
had been profitting
he/she/it
had been profitting
they
had been profitting
I
will have been profitting
we
will have been profitting
you
will have been profitting
he/she/it
will have been profitting
they
will have been profitting
I
would have profitted
we
would have profitted
you
would have profitted
he/she/it
would have profitted
they
would have profitted
I
would be profitting
we
would be profitting
you
would be profitting
he/she/it
would be profitting
they
would be profitting
I
would have been profitting
we
would have been profitting
you
would have been profitting
he/she/it
would have been profitting
they
would have been profitting
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