GD Accounting Glossary
Glossary › Net Profit

Net Profit

What remains after ALL expenses, including overheads and tax. The true bottom line.

Net profit is revenue minus every expense — direct costs, overheads, interest, and (in after-tax form) tax itself. It's the bottom line of the P&L and the number that ultimately grows equity.

Comparing net profit across periods, and as a percentage of revenue, shows whether the business is genuinely getting healthier or just busier.

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