Net profit is also called the bottom line. This is the difference between a company’s total revenues and total expenses. If the number is negative, this suggests the company has made a loss, if it is positive, happy days, the company has made a profit.
For example…
Did you know that Amazon had negative net profits also known as net losses for some quarters in the years between 2012 and 2015? This means the retail platform’s revenues were sometimes less than its expenses. This might seem strange that such a stalwart in the e-commerce world can be operating on thin profits, but it does happen to the best of them. Happily, for Amazon, subsequent years’ net profit have started tending positive.
