Net Profit

The big, fat, bottom line. Net. After. Done with "everything" (except dividend payments).

Net profit (on most planets) refers to the after-tax profits of a given company, according to GAAP, i.e. the "net" in there is after depreciation and amortization. It's a true net number you can hopefully count on. Like your toes.

Related or Semi-related Video

Finance: What are operating profits, net...62 Views

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finance a la shmoop.what are gross profits operating profits and net

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profits? well the greatest fishing company that walks the earth or swims

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the ocean made a fortune last year from selling nets. catching things like well [fish is caught from the ocean]

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me. but that's really a different thing and no Bueno. leave us alone. in an

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accounting sense net profits come after operating profits that come after gross

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profits .and the net thing is well pretty much taxes. so here's an income statement

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yeah yeah revenues and then there's the cost of the stuff you're selling. okay

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fine. we'll note the nets only cost a little bit to make and you sell them for

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a fortune .way overpriced if you ask me. like whatever happened to line fishing

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anyway lazy humans. so you have your revenues then your cost of goods sold.

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all right well if you subtract those cogs from the revs you get your gross [income statement pictured]

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profits. yeah gross just gross and sad frankly like why not eat more chicken

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seriously. anyway .so then you have your costs of operating the business you know

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overhead. secretaries and insurance and rent and fish-smell deodorizer. and then

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you have operating profits after you subtract. them yep you subtract those

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right from gross profits. get operating. so you made some number let's call it 10

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million bucks why not .you know how many of my brethren died to give you that

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money right? blood money. talk to Leo to see about it.

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maybe he'll make a movie . anyway let's say the tax rates 30% well you'd pay 3

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million in taxes on that 10 million of operating profit to then have net

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profits of seven million dollars. lots of profits .there people. yeah hope you can [equation]

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sleep at night.

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