What term describes a company's total earnings, commonly referred to as net profit?

The term that describes a company's total earnings, commonly referred to as net profit, is "Bottom Line." This phrase is widely used in financial discussions to indicate the final profit amount after all expenses, taxes, and costs have been deducted from total revenues. It represents the overall profitability of a business during a specific period and is a critical measure for stakeholders assessing the financial health of the company.

In contrast, gross margin refers to the difference between sales and the cost of goods sold, which does not account for operating expenses or taxes. Net revenue pertains to the total revenue adjusted for returns, allowances, and discounts, but it doesn't include deductions for all costs. Operating income is a measure of profit that considers earnings before interest and taxes, but it is not the net profit after all expenses have been deducted. Therefore, "Bottom Line" is the most accurate term to describe a company's total earnings or net profit.