What is net profit?

Net profit is also known as net income or net earnings. Now days companies usually drop the term net and instead they use the terms income before taxes and income after taxes. The net profit shows a companies total earnings during a specific time period and from this amount we deduct operating expenses, additional costs, taxes. And this sum can be positive or negative showing the companies earnings or losses. Another term for net profit if the taxes aren’t subtracted from this sum is operating profit or if it’s the case operating loss if the mentioned value is negative. The net profit is usually calculated on quarter years, half years or even for a whole year.