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

Over the last two years our companies net profit has been extremely low compared to our competitions large net earnings

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The net profit was all that matters according to our senior financial analyst because as long as we are in the black we are winning.

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The net profit of the company didn't look as attractive as the total profit, as a number of unexpected expenses had really eaten into their numbers.

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profit ratio early amortization