# net profit

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## Profit

A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer earns \$1,000,000 in total revenue. The widgets cost \$200,000 to make and his administrative and payroll expenses total \$250,000. He also must subtract \$50,000 in depreciation on his widget manufacturing equipment and pay \$200,000 in taxes. His net income is stated as: \$1,000,000 - \$200,000 - \$250,000 - \$50,000 - \$200,000 = \$300,000.

## net profit

the difference between a firm's SALES REVENUE and all COSTS. In accounting terms net profit is the difference between GROSS PROFIT and the costs involved in running a firm (including DEPRECIATION costs and INTEREST charges). In the UK, net profit may be expressed before or after deduction of CORPORATION TAX. See PROFIT, PROFIT-AND-LOSS ACCOUNT.

## net profit

the difference between a firm's TOTAL REVENUE and all EXPLICIT COSTS. In accounting terms, net profit is the difference between GROSS PROFIT and the costs involved in running a firm. See PROFIT, PROFIT-AND LOSS ACCOUNT.
References in periodicals archive ?
3 mn in net profit in 1Q 2012, as opposed to a net profit of USD 290.
Onic Holding swung from net profit in the first quarter of 2010 to a net loss in the first quarter of 2011.
For paper makers to enjoy a higher overall industry average for net profit margins, several widespread changes may need to take place.
Additionally, Wingnut includes allegations that costs were incorrectly deducted from the revenues to arrive at the net profit amount.
It projects unconsolidated full-year pretax profit at 56 billion yen and net profit at 37 billion yen on sales of 1,360 billion yen.
Calculating net profit margins requires basic mathematics.
5 million) will result in a net profit of NOK 155-160 million (US\$ 22-22.
on Wednesday announced a consolidated net profit of 27.
Building companies should earn about 8 to 15% net profit margins," said Emma Shinn, a financial consultant with the Lee Evans Group, a Colorado firm that helps home building companies improve their business operations.
said Tuesday its group net profit surged in the fiscal first half ending Sept.
Statewide, the net profit before taxes works out to 8.
Sales, pretax profit and net profit are in billions of yen, with year-on-year percentage changes in parentheses.

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