Net Profit (Profit After Tax)

Net profit represents the "bottom line" remaining for shareholders once all operating expenses, interest, tax and non-cash charges have been deducted. While net profit is important for dividend capacity and personal tax planning, it plays a secondary role in valuations because capital structure and depreciation policy vary between buyers. Nevertheless, persistently low net profit despite healthy EBITDA can alert acquirers to heavy debt servicing, aggressive capital allowances, or other red flags.