Pelno

Pelno is a term encountered in several languages to denote profit or earnings. In economics and accounting, profit is the financial gain that remains after costs are subtracted from revenue. The English equivalents are profit and net income, with distinctions often made among gross profit, operating profit, and net profit.

Calculation and types: Gross profit equals revenue minus cost of goods sold. Operating profit equals gross profit minus operating expenses. Net profit equals operating profit minus interest, taxes, and other non-operating items. Profitability is commonly expressed as margins, such as gross margin, operating margin, and net margin, which relate profit to revenue.

Usage and significance: Profitability influences pricing strategy, budgeting, investment decisions, and stakeholder perception. Firms monitor profits to evaluate performance, attract financing, and decide on dividend distributions or reinvestment. Profit figures are reported according to applicable accounting standards and may be taxed differently depending on jurisdiction.

Other uses: The term pelno, when encountered outside economics, may appear as a surname or place name in certain languages. In such contexts, it is not related to profitability. As with many cross-language terms, the precise meaning depends on regional usage and the surrounding discourse.