net profit


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

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

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 ?
Ooredoo Algeria's net profit plummeted 90% to QR40mn as revenue declined 13% to QR2.
The shipper's net profit for the first half of 2014 to June 30 was QR518.
In comparison to health plans, Yahoo Finance's accounting of net profit margins (accessed on Jan.
Net profit of Dhofar International Development & Investment declined to RO2.
The increase in net profit is attributed to an increase in demand in China and improving sales in the United States and Europe.
The consolidated net profits of the banking sector declined by 35.
Beltone Financial had forecast that net profit for the first half would be 101 million pounds and CI Capital had forecast a second quarter net profit of 88 million.
Averaging out reported figures from 37 papermaking companies that sell their stock on North American markets, the paper industry checks in with an average net profit margin of 0.
Salaries and royalties from the film's stars also are deducted to arrive at net profit.
said Thursday its consolidated net profit surged 14.
The first step in estimating the sustainable growth rate by this method is to calculate the surgical practice's net profit after taxes as a percent of its billings.
The net profit margin is the percentage of a revenue dollar that a business keeps after all the bills are paid.