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How can a business use "Net Profit" as a KPI?
in Business Analytics by Platinum (96.3k points) | 6 views

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Net profit (also referred to as net income or net earnings) measures how much money a company has earned from doing business over a given period of time (usually a year).

 

Net profit shows what is left from the money a company has earned (revenue) after subtracting all expenses.

 

In accounting terms it is often referred to as the "bottom line" (because it is reported at the bottom of an income statement).

 

Net Profit = Total Revenue - Total Expenses (including operating expenses, financing costs and taxes)

 

by Platinum (96.3k points)

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