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Profits Meaning: Definition, Examples, and Translations

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profits

[ˈprɒfɪts ]

Definitions

Context #1 | Noun

business

Profits refer to the financial gains or benefits obtained from a business or investment. It is the excess of revenue over expenses, indicating the successful performance of a company. Profits are crucial for the growth and sustainability of a business.

Synonyms

earnings, income, revenue.

Which Synonym Should You Choose?

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Word Description / Examples
profits

Use when discussing the difference between revenue and expenses in a business context, indicating the financial gain.

  • The company's profits doubled last year.
  • After cutting costs, we saw an increase in profits.
earnings

Applicable when referring to money gained from work or investments, often used in personal finance or company performance.

  • Her annual earnings are much higher than average.
  • The company's earnings report will be released next week.
income

Most suitable for discussing all money received by a person or a business, from various sources such as salary, investments, or sales.

  • He has a steady income from his job.
  • The business has a diversified income stream.
revenue

Refers to the total amount of money generated from sales or services before any expenses are deducted, primarily used in business contexts.

  • The company's revenue hit a record high this quarter.
  • Revenue from the new product line has been impressive.

Examples of usage

  • Last year, the company reported record profits.
  • The profits generated from the new product exceeded expectations.
  • Increasing profits is a primary goal for many businesses.
  • The company reinvested its profits into research and development.
  • Profits can be reinvested or distributed to shareholders.
Context #2 | Verb

business

To profits means to gain a financial advantage or benefit from a business activity. It involves making a surplus or net gain from a transaction or investment. Profiting is essential for the success and sustainability of a business.

Synonyms

benefit, capitalize, gain.

Which Synonym Should You Choose?

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Word Description / Examples
profits

Typically used in business or financial contexts to describe the financial gain after deducting expenses.

  • The company's profits increased by 20% this quarter.
  • Small businesses often struggle to generate significant profits in their first year.
gain

A broad term that can refer to obtaining something beneficial, such as money, skill, or advantage; typically used in a general sense.

  • He hopes to gain new skills in his internship.
  • The investment resulted in a significant gain for the investors.
benefit

Often used to describe an advantage or improvement obtained from something; it can be both financial and non-financial.

  • One of the benefits of working from home is a better work-life balance.
  • He received financial benefits from his new job.
capitalize

Used to describe the act of taking advantage of a situation to gain financial or other advantages, and often has a strategic or opportunistic connotation.

  • The company capitalized on the holiday season to boost sales.
  • Entrepreneurs should seek to capitalize on market trends.

Examples of usage

  • The company hopes to profits from the new marketing strategy.
  • She profited greatly from her investment in the stock market.
  • Profiting from a business venture requires strategic planning.
  • Businesses aim to profit from their products or services.
  • He profited from the real estate deal.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • Profits are crucial for businesses, as they help pay employees and reinvest for growth.
  • There are different types of profits such as gross profit (revenue minus cost of goods sold) and net profit (what remains after all expenses).
  • Healthy profit margins can indicate a successful business model, often guiding investor decisions.

Pop Culture

  • Popular shows like 'Shark Tank' highlight how entrepreneurs pitch ideas to secure funding and generate profits.
  • Books like 'The Lean Startup' emphasize efficient ways for businesses to grow and make profits.

History

  • The concept of profit-driven commerce became prominent during the Industrial Revolution, transforming economies.
  • Historically, traders in ancient civilizations offered profit-sharing agreements as part of their business practices.

Psychology

  • Profit motives can influence not just businesses but also individual behavior, driving people to work harder for better outcomes.
  • The anticipation of profits can lead to stress or excitement, impacting decision-making in financial contexts.

Origin of 'profits'

Main points about word origin

  • The word comes from the Latin 'profectus', meaning 'advancement' or 'gain'.
  • Before it referred to money, 'profits' was also used in Middle English to describe any benefit or advantage.

The word 'profits' originated from the Latin word 'proficere' meaning 'to advance' or 'to make progress'. Over time, it evolved to represent financial gains or benefits in business activities. Profits play a crucial role in the economy by incentivizing investment and innovation. Understanding and managing profits is essential for the success of businesses and the growth of economies.

See also: nonprofit, profit, profitability, profitable, profitableness, profitably, profiteer, profiteering, profitize.

Word Frequency Rank

At position #2,025, this word belongs to solid intermediate vocabulary. It's frequently used in both casual and formal contexts and is worth learning for better fluency.