Related Words

Fit Split: A two-pin split in which the pins are close enough together that the ball can hit them both.

Profit-Sharing Plan: An incentive system providing that employees share in company profits through a cash fund or a deferred plan used to buy stock or bonds.

Profitability: A company's ability to generate revenues in excess of the costs incurred in producing those revenues.

Profitability Ratios: Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of t . . . View Full Definition

Profit Taking: Profit taking is the sale of securities after a rapid price increase to cash in on gains. Profit taking sometimes causes a temporary market downturn after a period of rising prices as invest . . . View Full Definition

Profitability Index: The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.

Profit Sharing Plan: A qualified retirement plan established and maintained by an employer which enables employees and their beneficiaries to participate in the profits of the employer's business.

Profit Margin: A company's profit margin is derived by dividing its net earnings, after taxes, by its gross earnings minus certain expenses. Profit margin is a way of measuring how well a company is doing, . . . View Full Definition

Profit Rate: Annual Earnings per share after taxes as a percentage of shareholders' equity capital per share at corporate book value at the beginning of the year.

Profit Sharing: A profit-sharing plan is a type of defined contribution retirement plan that employers may establish for their workers. The employer may add up to the annual limit to each employee's profit- . . . View Full Definition