Which term refers to the profits made by a company after all expenses have been deducted?

The term that refers to the profits made by a company after all expenses have been deducted is net profit. This metric is crucial for assessing the overall profitability of a business, as it takes into account not only the cost of goods sold but also all other operating expenses, interest, taxes, and any other costs incurred.

When a company's income statement is analyzed, net profit represents what remains after all these deductions, showcasing how efficiently the company is managed and its ability to generate profit from its total revenues. Investors and stakeholders closely monitor net profit as it reflects the true earning power of the business, influencing investment decisions, and providing insights into financial health.

Other terms, such as gross profit and operating profit, highlight different aspects of profitability but do not represent the final profit after all expenses. Gross profit focuses solely on sales revenue minus the cost of goods sold, while operating profit accounts for operating expenses but excludes taxes and interest. Revenue, on the other hand, refers to the total income generated from sales before any deductions are made, which is fundamentally different from net profit.