What is Net profit?
Net profit, also known as net income or profit after tax, is the remaining profit a business has after deducting all expenses, taxes, and other costs from its total revenue. It represents the bottom line of the income statement.
Net profit
Net profit, also referred to as the bottom line, represents the total earnings of a business after deducting all expenses from its total revenue. It is a critical financial metric that reflects the overall profitability and financial performance of a company.
Understanding Net Profit:
Net profit is calculated by subtracting all expenses, including operating costs, taxes, interest, and depreciation, from total revenue. It provides a clear indication of how much money a business has earned after accounting for all costs associated with its operations. A positive net profit signifies that the company is generating earnings, while a negative net profit indicates losses.
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