Other

Drugmaker Novo Nordisk profits jump in diabetes scourge

Danish drugmaker Novo Nordisk, the world's leading insulin provider, on Wednesday reported a six percent jump in net profit in the first quarter, as the global onslaught of diabetes continued to grow.

Other

Novartis to buy back $5 bn in shares

Swiss pharmaceutical giant Novartis announced Wednesday a $5.0 billion share buyback even though competition from generics ate away at sales and earnings last year.

Other

GSK sees earnings rise amid good demand for vaccines

Pharmaceutical company GlaxoSmithKline says its net profit rose 50 percent in the third quarter to 808 million pounds ($986 million) thanks in part to strong sales of its vaccine products.

Other

AstraZeneca profits tumble in third quarter

British pharmaceuticals group AstraZeneca announced on Thursday a slump in quarterly profits, in part on higher investment costs, but raised its outlook for full-year revenues.

page 1 from 4

Net profit

In business and finance accounting, net profit is equal to the gross profit minus overheads minus interest payable plus/minus one off items for a given time period (usually: accounting period).

A common synonym for "net profit" when discussing financial statements (which include a balance sheet and an income statement) is the bottom line. This term results from the traditional appearance of an income statement which shows all allocated revenues and expenses over a specified time period with the resulting summation on the bottom line of the report.

In simplistic terms, net profit is the money left over after paying all the expenses of an endeavor. In practice this can get very complex in large organizations or endeavors. The bookkeeper or accountant must itemise and allocate revenues and expenses properly to the specific working scope and context in which the term is applied.

Definitions of the term can however vary between the UK and US. In the US, net profit is often associated with net income or profit after tax (see table below).

The net margin percentage is a related ratio. This figure is calculated by dividing net profit by turnover, and it represents profitability, as a percentage.

This text uses material from Wikipedia, licensed under CC BY-SA