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Net profit
what does Net profit mean??
Profit after tax and intrest or Profit before tax & intrest.
Plse reply only if sure..
Replies (5)
It is a profit before tax but after the interest
Its Profit after Interest and tax . short example :
Net sales-COGS=Gross profit
Gross Profit-operating expenses= EBIT
EBIT-Interest=EBT
EBT-Tax=EAT( Earning after tax also known as Net profit)
EBT-Dividend(preference+equity)=Retained Earning
EAT=NET PROFIT ,NP is always after tax earnings...
In accounts NP is profit after providing for Income Tax.
But in case of Fin Mgmt, NP is taken as per requirement, NPBT or NPAT
The meaning of net profit is profit after tax (PAT)
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