![]() |
|
Financial Terms | |
Operating profit margin |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, payroll, money, business, investment, stock trading, financial, inventory control, |
Definition of Operating profit marginOperating profit marginThe ratio of operating margin to net sales.
Related Terms:After-tax profit marginThe ratio of net income to net sales. Annual fund operating expensesFor investment companies, the management fee and "other expenses," Before-tax profit marginThe ratio of net income before taxes to net sales. Book profitThe cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT. Buy on marginA transaction in which an investor borrows to buy additional shares, using the shares cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions ![]() Contribution marginThe difference between variable revenue and variable cost. contribution marginAn intermediate measure of profit equal to sales revenue contribution marginthe difference between selling price and Contribution marginThe margin that results when variable production costs are subtracted contribution margin ratiothe proportion of each revenue dollar remaining after variable costs have been covered; Controllable profitThe profit made by a division after deducting only those expenses that can be controlled by the Cost–volume–profit analysis (CVP)A method for understanding the relationship between revenue, cost and sales volume. cost-volume-profit (CVP)analysis a procedure that examines degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current ![]() degree of operating leverage (DOL)Percentage change in profits given a 1 percent change in sales. Dollar safety marginThe dollar equivalent of the safety cushion for a portfolio in a contingent immunization EBITDA MarginEBITDA divided by total sales or total revenue. Effective margin (EM)Used with SAT performance measures, the amount equaling the net earned spread, or Gross marginRevenues less the cost of goods sold. gross margin, or gross profitThis first-line measure of profit GROSS PROFITThe profit a company makes before expenses and taxes are taken away. Gross profitThe difference between the price at which goods or services are sold and the cost of sales. Gross profitThe result of subtracting cost of goods sold from sales. Synonymous with gross margin. Gross ProfitRevenue less cost of goods sold. Gross profit marginGross profit divided by sales, which is equal to each sales dollar left over after paying ![]() Gross Profit MarginGross profit divided by revenue. Initial margin requirementWhen buying securities on margin, the proportion of the total market value of Maintenance margin requirementA sum, usually smaller than -but part of the original margin, which must MarginThis allows investors to buy securities by borrowing money from a broker. The margin is the MarginThe amount added to a lower figure to reach a higher figure, expressed as a percentage of the higher figure, e.g. the margin that profit represents as a percentage of selling price. Margin account (Stocks)A leverageable account in which stocks can be purchased for a combination of Margin callA demand for additional funds because of adverse price movement. Maintenance margin Margin of safetyA measure of the difference between the anticipated and breakeven levels of activity. margin of safetythe excess of the budgeted or actual sales Margin requirement (Options)The amount of cash an uncovered (naked) option writer is required to Margin Tax RateThe tax rate applicable to the last unit of income. MarginalIncremental. Marginal costThe cost of producing one extra unit. Marginal costThe incremental change in the unit cost of a product as a result of a Marginal Propensity to ConsumeFraction of an increase in disposable income that is spent on consumption. Marginal Propensity to ImportFraction of an increase in disposable income that is spent on imports. Marginal Propensity to SaveFraction of an increase in disposable income that is saved. Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. marginal tax rateAdditional taxes owed per dollar of additional income. Marginal Tax RatePercent of an increase in income paid in tax. Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Net profitSee operating profit. Net profit marginNet income divided by sales; the amount of each sales dollar left over after all expenses operating activitiesIncludes all the sales and expense activities of a business. operating budgeta budget expressed in both units and dollars Operating cash flowEarnings before depreciation minus taxes. It measures the cash generated from operating cash flowSee cash flow from operating activities. Operating Cash FlowIncome available after the payment of taxes, plus the value of the Operating cycleThe average time intervening between the acquisition of materials or services and the final Operating EarningsA term frequently used to describe earnings after the removal of the Operating expenseAny expense associated with the general, sales, and administrative OPERATING EXPENSESThe total amount that was spent to run a company this year. Operating ExpensesThe amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates. Operating exposureDegree to which exchange rate changes, in combination with price changes, will alter a Operating incomeThe net income of a business, less the impact of any financial activity, Operating IncomeA measure of results produced by the core operations of a firm. It is common Operating leaseShort-term, cancelable lease. A type of lease in which the period of contract is less than the Operating leaseThe rental of an asset from a lessor, but not under terms that would Operating LeaseOne where the risks and benefits, as well as ownership, stays with the lessor. Operating leverageFixed operating costs, so-called because they accentuate variations in profits. operating leverageA relatively small percent increase or decrease in operating leveragethe proportionate relationship between operating leverageDegree to which costs are fixed. Operating Line of CreditA bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year. Operating LoanA loan advanced under an operating line of credit. Operating profitThe profit made by the business for an accounting period, equal to gross profit less selling, finance, administration etc. expenses, but before deducting interest or taxation. operating profitSee earnings before interest and income tax (EBIT). Operating riskThe inherent or fundamental risk of a firm, without regard to financial risk. The risk that is operating risk (business risk)Risk in firm’s operating income. Original marginThe margin needed to cover a specific new position. Related: margin, security deposit (initial) phantom profita temporary absorption costing profit caused product contribution marginthe difference between selling price and variable cost of goods sold product line marginsee segment margin PROFITWhat’s left over after you subtract the cost of goods sold and all your expenses from sales. ProfitThe difference between income and expenses. profitThe general term profit is not precisely defined; it may refer to net Profit and Loss accountA financial statement measuring the profit or loss of a business – income less expenses – for an accounting period. profit and loss statement (P&L statement)This is an alternative moniker Profit before interest and taxes (PBIT)See EBIT. profit centera responsibility center in which managers are responsible for generating revenues and planning and controlling all expenses Profit centerAn entity within a corporation against which both revenues and costs are Profit centreA division or unit of an organization that is responsible for achieving profit targets. Profit marginIndicator of profitability. The ratio of earnings available to stockholders to net sales. profit marginthe ratio of income to sales Profit Margin RatioA measure of how much profit is earned on each dollar of sales. It profit moduleThis concept refers to a separate source of revenue and profit ratiosRatios based on sales revenue for a period. A measure of profit sharingan incentive payment to employees that is Profit Sharing PlanA retirement plan generally funded by a percentage of company profit-volume grapha visual representation of the amount Profitability indexThe present value of the future cash flows divided by the initial investment. Also called Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |