SHOWS PROFIT Meaning and
Definition
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The phrase "shows profit" refers to the financial statement of a company or business endeavor that indicates a positive financial gain or net income. It is commonly used in the context of assessing the financial performance of a company over a specified period of time.
When a business "shows profit," it means that its revenue from sales and other income sources exceeds its expenses, including operational costs, taxes, and interest payments. The profit earned reflects the excess money remaining after all expenses are deducted from the total revenue generated by the company. This positive financial outcome is often seen as a measure of a company's success and is crucial for its long-term sustainability and growth.
The ability to "show profit" is of paramount importance to business owners, shareholders, and potential investors as it is an indication of the company's ability to generate income and provide a return on investment. Furthermore, showing profit allows a company to reinvest in its operations, expand its market share, and reward shareholders with dividends, thereby increasing its overall value.
The term "shows profit" is frequently used in financial reports, such as income statements, balance sheets, and cash flow statements, to communicate the financial health and performance of a company. These reports provide a comprehensive overview of the company's revenue, expenses, assets, liabilities, and equity over a specific period, enabling stakeholders to evaluate profitability and make informed decisions about the company's future prospects.
Common Misspellings for SHOWS PROFIT
Etymology of SHOWS PROFIT
The phrase "shows profit" is not a standalone word but a combination of words.
The word "shows" is the third person singular form of the verb "show", which comes from the Middle English word "shewen" and the Old English word "sceawian". Both of these derive from the Proto-Germanic word "skawwōną" meaning "to look" or "to see".
The word "profit" comes from the Latin word "profĕtus", which means "advancement" or "benefit". It entered English through the Anglo-Norman French word "profyt" in the 14th century.
Therefore, the etymology of "shows profit" can be understood by examining the origins of the individual words.
