Nettotuotto

Nettotuotto, in Finnish finance and accounting, is a term describing the net return or net yield generated by a business activity, project, or asset after accounting for the costs associated with producing and selling that revenue. The concept is used to assess profitability and to compare alternatives on a like-for-like basis.

Calculation typically involves taking the gross revenue from the activity and subtracting the costs attributable to producing and selling that revenue. These costs may include variable costs (materials, direct labor, transport), allocated fixed costs (overheads), and adjustments such as sales discounts and refunds. In many accounting contexts, value-added tax (VAT) and other taxes are treated separately from turnover, so nettotuotto focuses on the income that remains after operating expenses. Depending on the purpose, some definitions also subtract depreciation, amortization, and interest, effectively aligning nettotuotto with net income or net operating profit.

Applications of nettotuotto include budgeting, project appraisal, and performance measurement to evaluate profitability, compare investment options, or determine the viability of products, product lines, or sites. It is distinct from gross turnover, which reflects revenue before deductions, and from net income in some definitions, which can include financing costs and taxes.

Variations in interpretation reflect the context and accounting conventions used. In some cases nettotuotto is equated with net operating income, while in others it denotes a broader or narrower measure of profitability after specific categories of costs. Overall, nettotuotto serves as a practical metric for assessing the profitability of a given activity after essential costs have been accounted for.