The term "annual profits" refers to the total earnings or revenue generated by a company within a given year. It represents the amount of money left over after all expenses have been paid, and is an important metric used to measure the financial health and success of a business. Annual profits can be calculated by subtracting costs such as rent, salaries, supplies, taxes, and other operating expenses from total revenue earned during that time period. The higher the annual profit figure, the more successful the company is deemed to be in terms of its financial performance.