Meaning & use
net profit
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Meanings
noununcountablefinance
The money a business has left after paying every cost, including wages, rent, interest, and taxes.
Grammar: Usually uncountable: net profit rose; sometimes with a: a net profit of five million.
Patterns
- net profit of an amount
- net profit for a period
The bakery reported a net profit of twelve thousand dollars last year.
Net profit fell after the tax increase.
Investors watch net profit more closely than sales.
nouncountable or uncountablebusiness
The amount you gain from a single sale or deal after deducting what it cost you.
Grammar: Used for individual deals too: net profit on the sale.
Patterns
- net profit on something
Her net profit on the sale of the used car was two hundred dollars.
After fees, the net profit from the event was small.
He calculated the net profit on each item.
Word forms
| plural | net profits |
|---|
Common combinations
- net profit margin
- The net profit margin dropped to four percent.
- record net profit
- The firm announced a record net profit.
- calculate net profit
- First calculate net profit, then decide on bonuses.
- annual net profit
- Annual net profit exceeded forecasts.
- net profit after tax
- Net profit after tax was two million.
Synonyms and how they differ
- bottom line
- Bottom line is an informal phrase for the final profit figure at the end of a statement.
- net income
- Net income is nearly identical and is the standard term in accounting reports.
- earnings
- Earnings is a looser word and may refer to profit before certain deductions.
Opposites
Word family
- profit noun
- money gained after costs
- profitable adjective
- making a profit
- profitability noun
- the ability to make a profit
- net adjective
- remaining after deductions
Commonly confused: net profit or gross profit?
net profit vs gross profit
Gross profit subtracts only the direct cost of goods sold, so it is always higher than net profit.
Practice
A shop earns 100,000 in sales and pays 90,000 in all costs and taxes. What is its net profit?
Choose one answer.
Net profit is what remains after all costs: 100,000 minus 90,000 is 10,000. The other numbers do not subtract costs.
Make it your own
Write a sentence using “net profit”, then check it and compare it with the examples above.