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Finance & Banking vocabulary · Financial Statements

Profit

Meaning in finance & banking, with examples

/ˈprɒfɪt/nounCore term

In finance & banking, profit means: Money a business earns after subtracting its costs from its revenue. When costs are higher than revenue, the result is a loss.

In Turkish: kar, kazanç

How it is used

Used in reports, news and meetings. Companies make, report or post a profit, and analysts follow gross profit, operating profit and net profit. Profit before tax and profit margin are key lines. Traders 'take profit' by closing a position at a gain.

Example sentences

  1. The bank reported a net profit of 18 billion lira for the first half of the year.

  2. Higher funding costs are putting pressure on our profit margin.

Common collocations

  • make a profit
  • net profit
  • profit before tax
  • profit margin
  • operating profit
  • net incomeWhat is left of a company's revenue after all costs, interest, taxes and other expenses are deducted. When it is negative, it is called a net loss.
  • revenueThe total income a company receives from its normal business activities, such as selling goods or services, before any costs are deducted.
  • expenseMoney that a business spends, or a cost it records, in order to run its activities and earn revenue, such as salaries, rent or interest.
  • P&LShort for profit and loss: the income statement, or more loosely the profit or loss made by a business, unit, trading desk or project.
  • in the blackMaking a profit, or having a positive balance in an account. It is the opposite of 'in the red'.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.