Net Dollars
Net dollars refer to the amount of money remaining after all expenses have been deducted from total revenue. It is a key financial metric used by businesses to evaluate their profitability and overall financial health.
For example, if a company generates $1 million in revenue but incurs $800,000 in expenses, its net dollars would be $200,000 ($1,000,000 – $800,000).
Net dollars can also be used to measure an individual’s personal finances. By subtracting expenses such as rent, utilities, and groceries from total income, one can determine their net dollars or disposable income.
It is important for businesses and individuals alike to track their net dollars to ensure they are operating within their means and making informed financial decisions.
References: Net Income – Wikipedia