Liverpool have announced pre-tax profits of £42 million for the previous year.
Latest accounts for the year ending May 31, 2019 showed the Reds’ turnover rose by £78m due to growing media, commercial and match day revenues.
It took the Anfield club’s overall turnover to £533m, which helped Jurgen Klopp’s side make a record £223m investment on first-team players.
They included the signings of Alisson, Fabinho and Naby Keita as Liverpool went on to be Premier League runners-up and clinch the Champions League.
Improved contracts were also awarded to 11 senior players with Mohamed Salah, Trent Alexander-Arnold and Jordan Henderson all handed new deals.
The extended run in Europe’s premier club competition coincided with a new broadcasting deal and saw the club’s media income rise by £41m to £261m.
Commercial revenues increased by £34m to £188m while match day figures grew by £3.5m to £84m alongside nine new sponsorship agreements.
Andy Hughes, Liverpool’s chief operating officer, said: “This continued strengthening of the underlying financial sustainability of the club is enabling us to make significant investments both in player recruitment and infrastructure.
“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.”
Liverpool have repaid £31m of owner Fenway Sports Group’s £110m investment in the new Main Stand, which opened in September 2016.
Building costs for their new £50m training ground in Kirkby, set for completion this summer, will be spread across a three-year period.
A further £60m is set to be spent on the expansion of the Anfield Road Stand that will take the stadium’s capacity beyond the 61,000 mark.