Definition

Noun: - The financial gain remaining after all operating expenses, taxes, costs, and allowances (including depreciation) have been deducted from a company's total revenue for a specific accounting period. It represents the final profit a company earns.

Usage

This term is used primarily in business, finance, and accounting contexts to report a company's ultimate profitability. It is a key indicator of financial health. - The company's net profit increased by 15% this quarter. - Investors were pleased with the strong net profit reported in the annual statement.

Advanced Usage

• "to report a net profit": To officially state that a company has earned a profit after all deductions.
  • The startup hopes to report a net profit for the first time next year.
• "net profit margin": A profitability ratio calculated as net profit divided by revenue, expressed as a percentage.
  • A high net profit margin indicates efficient management.

Variants and Related Words

• Net income (n): A synonymous term for net profit.
  • The report showed a significant rise in net income.
• Bottom line (n): An informal term for net profit, referring to the final line on an income statement.
  • At the end of the day, the bottom line is what matters to shareholders.
• Gross profit (n): The profit a company makes after deducting only the costs directly associated with producing its goods or services (Cost of Goods Sold). This is different from net profit, which includes all other expenses.

Synonyms

• Earnings: The amount of profit that a company produces.
• Net earnings: Another formal term for profit after all expenses.

Related Phrases

• Net profit after tax (NPAT): Specifies the profit remaining after all expenses and taxes have been paid.
  • The NPAT was distributed partly as dividends.

Noun

1. the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)