Business

Siemens nets record profits, but outlook cautious

German industrial giant Siemens on Thursday gave a cautious sales forecast for 2024, after netting a record profit in the previous financial year driven by its digital division.

Business

Ryanair rewards shareholders after profit soars

Irish no-frills airline Ryanair on Monday announced the start of regular dividends to shareholders after net profit surged 72 percent in its first half on higher fares and record traffic.

page 2 from 21

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