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NET Profit:

In simplest terms, NET profit the money left over after paying all expenses including carrying cost. Net profit, also referred to as the bottom linenet income, or net earnings is a measure of the profitability of a venture after accounting for all costs and taxes. It is the actual profit, and includes the operating expenses that are excluded from gross profit.

What is ‘Net Profit Margin’

Net profit margin is the ratio of net profits to revenues for a company or business segment . Typically expressed as a percentage, net profit margins show how much of each dollar collected by a company as revenue translates into profit. The equation to calculate net profit margin is: net margin = net profit / revenue.

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