Business

Engines giant Rolls-Royce back in profit, seeks CEO

Rolls-Royce, the British maker of aircraft engines, announced Thursday a return to annual profit in 2021 after it slashed costs, adding that its long-serving chief executive would step down.

Nokia profit matches expectations; dividend to resume

Wireless and fixed-network equipment maker Nokia reported fourth-quarter profits Thursday in line with analyst expectations and said it will resume paying a dividend and launch a share-buyback program because of its improved ...

Business

Ericsson profits soar despite China trouble

Swedish telecoms giant Ericsson said Tuesday its net profit soared in 2021, with a better-than-expected performance in the fourth quarter despite losing ground in the key Chinese market.

Siemens annual profits up despite supply chain snags

German industrial giant Siemens reported a jump in yearly net profit on Thursday despite a fourth quarter troubled by global supply chain issues that the company predicts will improve next year.

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Net profit

In business and finance accounting, net profit is equal to the gross profit minus overheads minus interest payable plus/minus one off items for a given time period (usually: accounting period).

A common synonym for "net profit" when discussing financial statements (which include a balance sheet and an income statement) is the bottom line. 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. 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 margin percentage is a related ratio. This figure is calculated by dividing net profit by turnover, and it represents profitability, as a percentage.

This text uses material from Wikipedia, licensed under CC BY-SA