Net profit - Wikipedia. Net profit, also referred to as the bottom line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs. It is the actual profit without inclusion of working expense in the calculation of gross profit. In a survey of nearly 2. This term results from the traditional appearance of an income statement which shows all allocated revenues and expenses over a specified time period with the resulting summation on the bottom line of the report. In simplistic terms, net profit is the money left over after paying all the expenses of an endeavor. In practice this can get very complex in large organizations or endeavors. Definition of profit: The positive gain from an investment or business operation after subtracting for all expenses. Definition of net profit: Often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from total revenue. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings. As profit and earnings are used synonymously for income (also depending on UK and. Profit definition, pecuniary gain resulting from the employment of capital in any transaction. The bookkeeper or accountant must itemise and allocate revenues and expenses properly to the specific working scope and context in which the term is applied. Definitions of the term can, however, vary between the UK and US. In the US, net profit is often associated with net income or profit after tax (see table below). The net profit margin percentage is a related ratio. This figure is calculated by dividing net profit by revenue or turnover, and it represents profitability, as a percentage. Purpose? Probably the most common way is to look at the net profits of the business. Given that companies are collections of projects and markets, individual areas can be judged on how successful they are at adding to the corporate net profit. NDTV Profit offers latest Stock Market News, Sensex news, Nifty news, Business news, Stocks in India. Get free Live streaming of NDTV Profit. Get analysis and free stock quotes, up to date news, portfolio management, stocks. Softech Consultores desarrollo e implantaci Your browser does not currently recognize any of the video formats available. Click here to visit our frequently asked questions about HTML5 video. 0:55 / Cap profit drill. Your browser does not. How to Calculate Gross Profit Margin. Gross profit is a fairly simple comparison of the cost of the goods your company sells to the income derived from those goods. Gross profit margin is the ratio of gross profit to total revenue. The basic template is. The main complication is . Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. Content from this book used in this article has been licensed for modification and reuse under the Creative Commons Attribute Share Alike 3. Gnu Free Documentation licenses. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language in Marketing Project.
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