Liverpool made a pre-tax profit of £42m last year despite a record £223m investment on players.
While that top line is well below the record £125m profit for the year ending May 2018, the rewards are being felt on the pitch with the club four victories away from winning their first league title in 30 years.
Figures released on Thursday for the financial year to 31 May, 2019 incorporate the purchases of Alisson Becker (£65m), Naby Keita (£52.75m), Fabinho (£43.7m) and Xherdan Shaqiri (£13m).
It also includes the increased costs of new contracts for 11 players, including captain Jordan Henderson, Roberto Firmino, Mohamed Salah, Sadio Mane, Andy Robertson and Trent Alexander-Arnold - who have all played a key role in helping Jurgen Klopp's champions-elect establish a 22-point lead at the top of the table.
Some of that cost was offset by sales including Danny Ward (£12.5m), Danny Ings (£20m) and Dominic Solanke (£19m).
Income was also boosted by Champions League success, although as victory in the final in Madrid came in June the prize money from winning a sixth European Cup will be counted in the current financial year.
"This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure," said chief operating officer Andy Hughes.
"Being able to reinvest over £220m on players during this financial period is a result of a successful business strategy, particularly the significant uplift in commercial revenues.
"The cost of football, however, does continue to rise in transfers and associated fees but what's critical for us is the consistency of our financial position, enabling us to live within our means and continue to run a sustainable football club."
Turnover increased during the period by £78m to £533m with media revenue increasing by £41m to £261m, commercial revenue increasing by £34m to £188m and match revenue increasing by £3.5m to £84m.
The rise is a result of a new Champions League broadcasting deal which began during this period, finishing a close second to Manchester City in the Premier League and higher partnership and merchandising value, with Liverpool signing their first training kit sponsorship deal with AXA.
"What we're seeing is sustained growth across all areas of the club which is aligned to the recent performance on the pitch," added Hughes.
"Since this reporting period we have continued to reinvest in the club's infrastructure, and we look forward to the opening of our new (£50m) training base at Kirkby ahead of the new season which will provide first-class facilities for our players and staff.
"We have also just completed a second-phase consultation on a proposed expansion of the Anfield Road stand which could see an increase in the stadium's capacity.
"These financial results and this sustained period of solid growth is testament to our ownership, Fenway Sport Group, who continue to support the club's ambitions and continue to reinvest revenues both in strengthening the playing squad and the club's infrastructure to build for the future."
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