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Financial Terms Dictionary -  Economic Terms - Investment Terms

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Corporate Profits - Company Gross Operating Profits

 

Definition: Measures the total amount of pre-tax profits earned from normal business activities, excluding interest expense on borrowing and valuation adjustments. A rising trend has a positive effect on the nation's currency because good business conditions are a sign of a strong consumer spending and import/ export activity.

 

 

Additional Info: Increasing corporate profit margins are seen as extremely attractive to investors and are likely to boost share/ stock prices.

Related Terms: Consumer Spending - Corporate Goods Price Index (CGPI) - Corporate Services Price Index

 

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