Not logged in : Login
(Sponging disallowed)

About: Bottom Line   Goto Sponge  NotDistinct  Permalink

An Entity of Type : schema:Thing, within Data Space : linkeddata.uriburner.com associated with source document(s)
QRcode icon
http://linkeddata.uriburner.com/describe/?url=http%3A%2F%2Fdata.wordlift.io%2Fwl0166%2Fentity%2Fbottom_line_4

AttributesValues
type
sameAs
label
  • Bottom Line
  • Net Profit
  • Net profit
Title
  • Bottom Line
  • Net Profit
  • Net profit
name
  • Bottom Line
alternateName
  • Net Profit
  • Net profit
description
  • Net profit also referred to as the bottom line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs. In a survey of nearly 200 senior marketing managers, 91 percent responded that they found the "net profit" metric very useful. In accounting, net profit is equal to the gross profit minus overheads minus interest payable for a given period. A common synonym for "net profit" when discussing financial statements is the bottom line. Case Study: Imagine to open an ice-cream shot. The shop in the first month of life manages to sell over 1,000 ice-creams that at an average price of $3, generates $3,000 in revenues. Is this good or bad? We don't know yet. Why? We have to look at the bottom line of the business. In other words, are you going to make money once we will subtract from the revenues all the direct (such as raw materials) and indirect (such as rent) costs related to the business? Well, you will know the answer by looking at the bottom line. If that is positive, then you will have a net profit. If that is negative, you will have a net loss. In conclusion, the net profit tells you in part whether the business has been successful in creating additional money (which is not necessarily cash) for the business. One way to know whether the net profit is good or bad is to use a financial ratio, called "net profit margin." What does this ratio tell you? This ratio tells you what percentage of your revenues is comprised of profits. The higher this ratio, the better. But how do you know when this ratio is high enough? Simple, you have to look for comparable companies. For instance, a tech company will generate higher net profit margin, compared to a retail company. Therefore, to avoid comparing apples to oranges, you have to know in which industry your business operates. Then, select a list (3 to 5 is enough) of similar businesses, and if the data is publicly available, you can assess whether your net profit margin is good enough.
url
is References of
is Relation of
Faceted Search & Find service v1.17_git34 as of Jul 24 2019


Alternative Linked Data Documents: PivotViewer | ODE     Content Formats:       RDF       ODATA       Microdata      About   
This material is Open Knowledge   W3C Semantic Web Technology [RDF Data] Valid XHTML + RDFa
OpenLink Virtuoso version 08.03.3315 as of Aug 21 2019, on Linux (x86_64-generic-linux-glibc25), Single-Server Edition (378 GB total memory)
Data on this page belongs to its respective rights holders.
Virtuoso Faceted Browser Copyright © 2009-2019 OpenLink Software