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

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 ?
Five out of the nine listed Kuwaiti banks witnessed an increase in their profitability, led by Burgan Bank, with a net profit amounting to USD 63.
For paper makers to enjoy a higher overall industry average for net profit margins, several widespread changes may need to take place.
This is because such high marketing and production costs significantly reduce the net profit, which is the basis used to compute royalties paid to net profit participants
The net profit, which drops even further once federal income taxes are paid, is the money left over after various expenses and state taxes are deducted from gross revenues.
The company targets a pretax profit of 15 billion yen and a net profit of 8 billion yen on operating revenues of 530 billion yen for the current fiscal year.
Net Profits and Appropriation of KGHM Polska Miedz, 2006-2008
The real estate sector, which has four listed entities, continued to languish in the negative range with net profits declining 7.
Aggregate net profits of the Saudi corporate sector reached SR73.
Japan's top six trading houses posted sizable increases in their consolidated net profits in the April to December period thanks to higher commodity prices and strong performances in emerging economies.
3 million in net profits for the 3rd quarter of 2009, compared to SR 9 million for the 3rd quarter of the previous year, a decrease of 63.
For net profits to increase when gross profit as a percentage of revenue decreased indicates notable operational expense reductions as a percentage of revenue.
Five of six major Japanese nonlife insurers posted gains in their net profits in the first half of fiscal 2007 from a year earlier, as no major disasters hit Japan in the April-September period, according to their parent-only earnings reports released Tuesday.