companydata.dkNet result (årets resultat)
The net result (årets resultat) is the bottom line of the financial statements: the company's total profit or loss for the fiscal year after all costs, financial items, and tax have been deducted.
The net result is the figure every other line of the income statement leads to. A positive result increases equity (unless distributed as dividend); a negative result erodes it. The trend in net results over several years often says more than a single year's figure.
Result and appropriation
The annual report also shows how the result is appropriated: how much is distributed as dividend to the owners, and how much is transferred to equity. A company that pays out its entire profit year after year builds no buffer for bad times.
Related terms
Operating profit (EBIT)
Operating profit (EBIT — Earnings Before Interest and Taxes) is the result of a company's core operations, before financial items and tax. It shows whether the business itself makes money.
Equity (egenkapital)
Equity (egenkapital) is the difference between a company's assets and its liabilities — the owners' share of the company. It typically consists of share capital, retained earnings, and any reserves.
Dividend (udbytte)
A dividend (udbytte) is the part of a company's profit distributed to the owners rather than retained in the business. Ordinary dividends are approved at the general meeting based on the annual report.
Gross profit (bruttofortjeneste)
Gross profit (bruttofortjeneste) is revenue minus the direct costs of delivering goods or services (e.g. cost of goods sold). For most small Danish companies, gross profit is the top line of the published financial statements, because revenue may be omitted.