Net profit
Also called: profit after tax, PAT, net income, bottom line
What is left of revenue after every expense, including interest and tax. It belongs to the shareholders.
Net profit is the final line of the income statement. It can be paid out as dividends or kept in the business, where it adds to shareholders' equity.
Net profit can be lifted or lowered by one-off items, such as selling a property, so it is worth checking what is included before comparing years.
Learn more in these lessons
- Revenue, expenses and profitWhat is the difference between revenue and profit?
- Profit compared with cash flowWhy can a profitable company run out of cash?
- Operating profit, EBITDA and net profitWhat is the difference between EBITDA, operating profit and net profit?
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