Net Profit Before Extraordinaries is the residual income of a firm after taking Total Revenue and subtracting all Ordinary Expenses for the reporting period. This means that one-off items are not included in the figure.
After all costs have been taken into account, including taxes and non cash items such as Depreciation and Amortisation, you are left with Net Income, or Earnings.
This amount is taken to Retained Earnings on the Balance Sheet at the end of every year and it is from this pool of Retained Earnings that companies pay dividends in accounting terms.
However, if there are exceptional, one off items (for example as a factory fire or other disaster), analysts tend to remove the effects of these costs from Net Profits to get a better idea of how the company is performing operationally.
| Ticker | Name | Net Profit Before Extraords | StockRank™ |
|---|---|---|---|
| LON:HSBA | HSBC Holdings | 23533.00 | 94 |
| LON:SHEL | Shell | 18007.00 | 94 |
| LON:RIO | Rio Tinto | 10058.00 | 90 |
| LON:BP. | BP | 9516.00 | 53 |
| LON:ULVR | Unilever | 6487.00 | 88 |