Gross Profit

Beginner 💰 Finance / Accounting

Definition

Revenue minus COGS—the money left before operating expenses crush your dreams.

Example Usage

Our gross profit margin is 45%, but once we factor in R&D and marketing, it evaporates.

Origin

Fundamental income statement concept from commercial accounting

Fun Fact

Gross profit is the only number retailers actually care about before layoffs are announced

Source: Standard income statement terminology

Related Terms

Intermediate

managerial accounting

Internal accounting focused on providing information for management decisions rather than external reporting. Unlike financial accounting's rigid rules, managerial accounting embraces whatever analysis helps executives decide which division to blame for poor performance.

💰 Finance / Accounting
Advanced

futures

Financial contracts obligating parties to buy or sell assets at predetermined future dates and prices, essentially allowing traders to bet on tomorrow's commodity prices today. These derivatives let farmers hedge against price drops and speculators gamble on market movements without ever touching an actual bushel of wheat. The futures market adds liquidity and price discovery to markets while giving financial news anchors something to dramatically discuss at market close.

💰 Finance / Accounting
Intermediate

taxation

The art of transferring wealth from citizens to government coffers through a bewildering array of forms, deductions, and loopholes that require advanced degrees to navigate. It's the reason April 15th is the most dreaded day on the calendar and accountants drive nice cars. Somehow, despite everyone paying, roads still have potholes.

💰 Finance / Accounting
Advanced

Short Selling

Borrowing a stock, selling it, and hoping to buy it back cheaper, which is basically betting against a company's success while profiting from their misery. It's the financial equivalent of rooting for the villain, and occasionally, the villagers fight back with meme stocks.

💰 Finance / Accounting
Intermediate

evergreen loan

A revolving credit facility that automatically renews, giving borrowers perpetual access to funds as long as they meet conditions. It's the financial equivalent of a gym membership that never expires—convenient until you can't make the payments.

💰 Finance / Accounting
Intermediate

incurred

Corporate-speak for 'we spent money' or 'we're now responsible for something unfortunate.' It's the passive-aggressive accounting term for when costs, debts, or liabilities show up uninvited on your balance sheet. The word makes financial disasters sound inevitable and sophisticated, as if you didn't just make a questionable decision.

💰 Finance / Accounting

Translate This Term

See “Gross Profit” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on XShare on FacebookShare on LinkedIn

Discover a Term

Advanced

geezel

A Cincinnati-born exclamation expressing extreme surprise or astonishment, serving as the Midwest's answer to 'oi vey.' ...