Net Profit


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Net Profit

 

in capitalist society, the profit left over after income taxes. Net profit, whose amount depends on the amount of gross profit and the magnitude of income taxes, is used by businessmen and monopolies for the expansion of production and for parasitic consumption. By maintaining secrecy in commercial operations, exaggerating the depreciation rate of fixed assets, and using sophisticated methods to falsify accounts, capitalists are able to understate their net profit and thereby pay lower taxes.

The net profit of socialist enterprises is the profit shown on the balance sheet—that is, the amount left over after subtracting payments made to the state from profits: capital charges, fixed (rent) payments, payments from the free profit remainder, and interest payments on loans. Net profit is used to form incentive funds, to augment the circulating capital of enterprises, and to finance certain capital investments.

References in periodicals archive ?
The shipper's net profit for the first half of 2014 to June 30 was QR518.
Five out of the nine listed Kuwaiti banks witnessed an increase in their profitability, led by Burgan Bank, with a net profit amounting to USD 63.
Net profit of Dhofar International Development & Investment declined to RO2.
Finansbank was the first in foreign-capital banks ranking by net profit in first half of 2010.
The increase in net profit is attributed to an increase in demand in China and improving sales in the United States and Europe.
The consolidated net profits of the banking sector declined by 35.
When it reported first quarter results, Ezz Steel blamed its fall in net profit on declining steel prices and weak export markets.
60 percent net profit margin average is, it should be noted that an average is created by accumulating a range of figures.
This is because such high marketing and production costs significantly reduce the net profit, which is the basis used to compute royalties paid to net profit participants
For the full business year ending next March, the company expects a group net profit of 60 billion yen and a pretax profit of 100 billion yen on sales of 2,200 billion yen.
The first step in estimating the sustainable growth rate by this method is to calculate the surgical practice's net profit after taxes as a percent of its billings.
The net profit margin is the percentage of a revenue dollar that a business keeps after all the bills are paid.