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Profit: meaning, definitions and examples

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profit

 

[ˈprɒfɪt ]

Definitions

Context #1 | Noun

financial

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. It is often used to measure the success or effectiveness of a business or investment.

Synonyms

earnings, gain, income, revenue.

Which Synonym Should You Choose?

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Word Description / Examples
profit

Typically used in business contexts to describe the financial gain after all expenses have been deducted from revenue.

  • The company's profit increased by 20% this quarter.
  • After deducting all his costs, his final profit was impressive.
gain

Used to describe an increase in wealth or resources, and can be applied broadly to both financial and non-financial contexts.

  • She made a significant gain from the sale of her house.
  • He experienced a huge gain in his stock investments.
income

Refers to the money received, especially on a regular basis, for work or through investments. Commonly used to describe what individuals earn.

  • His primary source of income is his salary.
  • She relies on rental income from her properties.
earnings

Often used in financial reports or in reference to the amount of money a person or company makes during a specific period.

  • The company's earnings report is due next week.
  • Her annual earnings have significantly increased over the years.
revenue

Refers to the total amount of income generated by the sale of goods or services related to the company's primary operations.

  • The company's annual revenue exceeded expectations.
  • They need to find new ways to increase their revenue.

Examples of usage

  • The company reported a significant profit in the last quarter.
  • Investors are looking for opportunities to maximize their profits.
Context #2 | Verb

business

To obtain a financial advantage or benefit, especially by making money through investments or commercial activities.

Synonyms

benefit, capitalize, gain, prosper.

Which Synonym Should You Choose?

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Word Description / Examples
profit

This term is primarily used in business and finance to describe money earned after subtracting costs. It can also refer to any advantageous gain.

  • The company made a significant profit this quarter
  • She sold her stocks for a profit
benefit

Typically used to describe an advantage or favorable result that helps someone or something. It can be used in both financial and non-financial contexts.

  • The new policy will benefit all employees
  • Regular exercise has numerous health benefits
gain

Used to describe obtaining something valuable or useful, can be both material and immaterial.

  • He gained valuable experience during his internship
  • The stock market gains exceeded expectations
capitalize

This term is used in a financial investment context and also metaphorically to describe taking advantage of an opportunity.

  • The firm capitalized on the market trend to increase its earnings
  • She capitalized on her culinary skills to start a successful bakery
prosper

Used to describe a state of success, usually over a long period, involving financial growth and well-being.

  • After years of hard work, the small business began to prosper
  • The town prospered due to its strategic location

Examples of usage

  • The company hopes to profit from the new partnership.
  • She profited greatly from her real estate investments.

Interesting Facts

Etymology

  • The word comes from the Latin 'proficere,' meaning 'to make progress' or 'to profit'.
  • During the Middle Ages, it was commonly used in relation to financial gains in trade.

Economics

  • Profit can come in different forms, like gross profit, which is money made before expenses, and net profit, which is the money left after costs.
  • Understanding profit is crucial for businesses to measure success and make strategic decisions.

Pop Culture

  • Many popular movies and books depict characters trying to gain profit, showing the adventurous or risky side of business.
  • The phrase 'Time is money' often highlights the importance of making profitable use of one’s time in pop culture.

Psychology

  • Research shows that the anticipation of profit can trigger feelings of excitement and motivation, influencing decision-making.
  • Studies suggest that individuals who focus on long-term profit rather than short-term gains tend to make better financial decisions.

History

  • The concept of profit played a pivotal role in the evolution of capitalism during the Renaissance.
  • Many historical figures, such as Adam Smith, emphasized the importance of profit as a driving force in economic systems.

Translations

Translations of the word "profit" in other languages:

🇵🇹 lucro

🇮🇳 लाभ

🇩🇪 Gewinn

🇮🇩 keuntungan

🇺🇦 прибуток

🇵🇱 zysk

🇯🇵 利益 (りえき)

🇫🇷 profit

🇪🇸 beneficio

🇹🇷 kâr

🇰🇷 이익

🇸🇦 ربح

🇨🇿 zisk

🇸🇰 zisk

🇨🇳 利润 (lìrùn)

🇸🇮 dobiček

🇮🇸 hagnaður

🇰🇿 пайда

🇬🇪 მოგება

🇦🇿 mənfəət

🇲🇽 beneficio

Word Frequency Rank

This word ranks #1,564, placing it within important intermediate vocabulary. Learning it will significantly improve your ability to express yourself in English.