net profit

Definition

Often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time (usually one year). also called net income or net earnings.

For more information, see Net vs Gross.

Use net profit in a sentence

After paying off all the expenses for the year, the money that remained is the company's net profit.

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profit ratio below-the-line expenditure