Net Profit and Net Loss

Net profit is the surplus remaining after charging against gross profit all the expenses, including depreciation and other necessary provisions, properly attributable to the normal activities of the particular business. A net loss is the converse of a net profit.

Net Quick Assets

The difference between allowable current assets and changeable current liabilities. This figure is referred to as the working capital. A contractor must have adequate working capital in order to be bonded.

Net Registered Tonnage (NRT)

It refers to the earnings space capacity of a ship. It expresses the ship space available for the storage of cargo and accommodation of passengers. It is obtained by deducting from GRT the space (taking 100 cubic ft = 1 ton) occupied by stores, fuel, machinery, crew members etc. which does not represent the earning capacity of ship.

Net relevant earnings

The income that can be used to assess the maximum contribution that can be made to a personal pension scheme by the self-employed or employees in non-pensionable employment. In the case of the self-employed this is income (tax schedule D) less business expenses. For the employed it is income (tax Schedule E) including profit-related pay and taxable benefits.

Net Retained Liability

The amount of insurance that a ceding company keeps for its own account and does not reinsure in any way. It is the amount of loss that a cedent retains after all available reinsurance recoveries (except in some instances for catastrophe reinsurance). See also Net Loss.