Net Dollars
Net Dollars refers to the total amount of money earned by an individual or organization after all expenses have been deducted. It is a crucial metric used to evaluate the overall profitability of a business or individual.
For example, if a company generates $1 million in revenue but incurs $700,000 in expenses, its net dollars would be $300,000. This figure represents the actual amount of money the company is able to keep and reinvest in its operations.
Net Dollars can also be used to assess the financial health of an individual. By subtracting all expenses from total income, one can determine how much money is actually being saved or invested for future goals.
It is important for businesses and individuals to track their net dollars regularly to ensure they are operating efficiently and effectively managing their finances.
Examples of Net Dollars Calculation:
- Total Revenue: $500,000
- Total Expenses: $300,000
- Net Dollars: $200,000
For more information on Net Dollars, please visit Wikipedia.