The difference between gross profit and operating profit, the difference between gross profit and ne

Updated on amusement 2024-03-23
21 answers
  1. Anonymous users2024-02-07

    The so-called profit actually refers to the results of the production and operation activities of the company and enterprise in a certain period, that is, the result of income and expenses, which is the ultimate element that reflects the business results. Profit usually includes net investment income, net non-operating income and operating profit. Among them, the net investment income reflects the financial results of the company's and enterprises' investment activities, and is the balance of investment income and investment losses. Operating profit is the financial results that reflect the business activities of the company or enterprise, including the profit of the main business and other business profits; The formula is:

    Operating Profit = Operating Income.

    Operating Costs - Period expenses.

    Taxes and surcharges on the main business.

    2. Gross profit.

    Gross profit, commonly known as gross profit, refers to the sales revenue (operating income) of products in a certain period of time of an enterprise minus directly allocable costs (such as materials and labor). It is calculated as follows: gross profit = sales - product cost (direct cost).

    3. Net profit.

    Net profit refers to the company's profit retention after deducting the directly allocated costs and indirect allocated costs from the total sales of the enterprise.

    Net profit is the final result of an enterprise's operation, and the more net profit, the better the operating efficiency of the enterprise; If the net profit is less, the operating efficiency of the enterprise is poor, and it is the main indicator to measure the operating efficiency of an enterprise. It is calculated as follows: net profit = gross profit non-directly allocable cost or net profit = sum of profit - directly allocated cost not directly allocated.

    Due to the differences in operating costs in different industries (operating costs mainly include the labor costs of purchasing raw materials and direct production), the gross profit of the manufacturing and distribution industries is usually lower, while the gross profit of the service industry is relatively high.

    Gross profit margin can be calculated from gross profit.

    Gross Profit Operating Income = (Operating Income - Operating Costs) Operating Income. Gross margin represents the ability of a business to make a profit in the direct production process.

    It can be said that the higher the gross profit margin, the higher the profitability of the enterprise and the stronger the ability to control costs. However, for enterprises of different sizes and industries, the comparability of their gross profit margins is not strong.

  2. Anonymous users2024-02-06

    Gross profit generally refers to gross profit, the balance of the sales revenue (selling price) of commercial enterprises minus the original purchase price of goods. The symmetry of net profit is also known as the difference between the purchase and sale of goods. Because it has not subtracted the commodity circulation fee and tax, it is not net profit, so it is called gross profit.

    In China, the difference between the purchase and sale of industrial products refers to the difference between the ex-factory price and the wholesale price of the same product (the difference between the wholesale price and the retail price is called the batch zero difference), and the difference between the purchase and sale of agricultural and sideline products refers to the difference between the purchase of the same agricultural and sideline products and the wholesale or retail price of the same kind of agricultural and sideline products.

    Operating profit generally refers to sales profit, which is the profit realized by an enterprise in all its sales business, also known as operating profit and operating profit, which includes the profit of the main business. Sales profit is always the goal of business and economic activities, without enough profits can not continue to survive enterprises, without enough profits, enterprises can not continue to expand and develop. Many business owners are at a loss in the face of fierce competition in the market and ultra-low profit product sales.

    But if the price is not reduced, the product cannot be sold, and the company can not survive.

  3. Anonymous users2024-02-05

    Gross profit is not operating profit.

    Gross Profit = (Sales Revenue - Cost of Sales) Sales Revenue.

    Operating profit = sales revenue - cost of sales + other business income - other business costs - three major expenses - business tax.

  4. Anonymous users2024-02-04

    The difference between net profit and gross profit is the difference in profit. Gross profit is profit with costs, and net profit is profit without all costs. Gross profit is the basis of net profit, the level of gross profit of a company directly determines its net profit, and net profit is ultimately distributed to major shareholders, if it is a listed company, the quality of profit will also directly affect the stock price trend.

  5. Anonymous users2024-02-03

    Gross profit, often abbreviated: gross profit.

    Gross profit = income - cost, for example, the purchase price of a product is 100 yuan, the selling price (excluding tax) is 150 yuan, and the gross profit = 50 yuan.

    Net profit = income - costs - business taxes and surcharges - expenses + (- net non-operating income and expenditure - income tax amount.

  6. Anonymous users2024-02-02

    What is the difference between gross profit, net profit, net profit?

  7. Anonymous users2024-02-01

    Gross profit is greater than net profit.

  8. Anonymous users2024-01-31

    Net profit requires gross profit minus management costs.

  9. Anonymous users2024-01-30

    The gross profit is not all yours.

  10. Anonymous users2024-01-29

    The difference between gross margin and net profit margin.

  11. Anonymous users2024-01-28

    How to distinguish between gross profit, net profit and net profit, and what is the difference between the three?

  12. Anonymous users2024-01-27

    Gross profit is the remainder of revenue minus costs, and profit is the remainder of revenue minus all costs. The difference between the two is that the meaning is different and the calculation formula is different.

    The significance of calculating gross profit is that if you do not do the business, some resources will be wasted or will still be consumed, and the profit will become negative; If you do this business, you may make a profit or reduce your loss. For enterprises with quite good efficiency and high resource utilization, the concept of gross profit can be completely ignored.

    The essence of profit is the manifestation of corporate profitability. Profits are not only qualitatively identical, but also quantitatively equal, differing only that surplus value is for variable capital and profit is for total costs.

    Profit generally refers to net profit, which refers to the profit left over from all expenses and taxes from gross profit. Profit is further divided into gross profit, net profit, operating profit, current year profit, undistributed profit, etc.

    Extended information: 1. Generally speaking, net profit is another term for net profit, that is, after-tax profit, and there is no essential difference between the two. The concept of net profit is used in the official financial statements. So, let's focus on gross profit and net profit.

    Gross profit is one of the most important aspects of corporate profit.

    1. Gross profit = product selling price - raw materials ** - labor ** Gross profit margin = gross profit Operating income x 100% Gross profit does not include financial expenses, management expenses and sales expenses. The gross profit margin of different industries varies greatly, and it should be treated differently when investing, the gross profit margin of the retail industry may be very low, and the gross profit margin of the jewelry industry is very high. In fact, the concept of net profit is still very easy to understand, we literally speaking, net profit is our own profit.

    Gross Profit Non-directly Distributable Costs Net Profit. Let's take an example, if you buy 8 yuan and sell it for 14 yuan, then your net profit or net profit is 6 yuan.

    2. Generally speaking, the gross profit is a positive amount, while the net profit may be a negative amount, and most of the time the gross profit amount is higher than the net profit amount. Among these profits, gross profit is the cornerstone of corporate profits, whether the pure "product production link" makes money, operating profit and total profit, including net profit, are actually on the basis of gross profit and constantly reduce various costs (there are also benefits, under normal circumstances, costs are greater than revenue). If the gross profit of a unit is negative, then the profitability of the business becomes a problem.

  13. Anonymous users2024-01-26

    Gross profit is that there is no removal of capital and labor rent, etc.! Profit is net money, minus all expenses!

  14. Anonymous users2024-01-25

    Gross profit is the income you earn for a day, that is, turnover, and profit is the part of the cost of going out.

  15. Anonymous users2024-01-24

    Gross profit is the total revenue, and profit refers to the net profit. To put it simply, gross profit cost = net profit! Give it a point, pro.

  16. Anonymous users2024-01-23

    The difference between net profit and gross profit is as follows:1. The definitions are different. Net profit refers to the total profit of the enterprise in the current period minus the amount of income tax, that is, the after-tax profit of the enterprise.

    The gross profit refers to the main business income minus the main business cost, depending on the profitability of the main business project. Gross profit is the percentage of gross profit from the sale of goods or operating income.

    2. The calculation formula is different. Net profit = total profit - income tax expense, net profit belongs to tax profit. Gross profit = operating profit + non-operating income - non-operating expenses.

    3. The role is different. Net profit is the main indicator to measure the operating efficiency of an enterprise. The gross profit is the basis for accounting for the operating results of the enterprise and whether the formulation is reasonable.

  17. Anonymous users2024-01-22

    The difference between net profit and gross profit is as follows:

    1. The probability is different: net profit refers to the total profit of the enterprise in the current period after deducting the income tax. Gross profit refers to the main business income minus the main business cost only.

    2. The influencing factors are different: the influencing factors of net profit are the total profit and income tax expense, and the influencing factors of gross profit are the purchase price and sales of goods.

    3. The calculation formula is different: net profit = total profit - income tax expense. Gross profit is equal to the main business income - main operating operating costs.

    Net profit considerations

    It is recommended that users pay attention to the relationship between the numerator and denominator of the net profit growth rate. The net profit growth rate is a proportional relationship, and the absolute numbers of the numerator and the denominator itself are enlarged or decreased year-on-year, and the proportion itself remains unchanged. Even if the net profit growth rate remains unchanged, it does not mean that the company has not changed.

    It should be noted that the net profit growth rate is more reliable when used in conjunction with the operating income growth rate. The growth rate of net profit is used in conjunction with the growth rate of operating income, and it can be seen whether the growth of net profit is the main business of the enterprise. For example, the profit from the disposal of assets mentioned above does not indicate that the company's operating ability has improved.

    The above content refers to Encyclopedia - Net Profit.

  18. Anonymous users2024-01-21

    1. The meaning is different.

    The balance of the sales revenue (selling price) of the commercial enterprise after deducting the original purchase price of the goods. The symmetry of net profit is also known as the difference between the purchase and sale of goods.

    Net profit refers to the total profit of the enterprise in the current period minus the amount of income tax, which is the after-tax profit of the enterprise. Income tax refers to the tax calculated and paid to the state by the enterprise on the total amount of profits realized in accordance with the standards stipulated in the income tax law. It is a deduction item from the total profit of the enterprise.

    2. The determinants are different.

    Net profit refers to the company's profit retention after paying income tax in accordance with the provisions of the total profit, which is also generally known as after-tax profit or net profit. The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense.

    In China, the difference between the purchase and sale of industrial products refers to the difference between the ex-factory price and the wholesale price of the same product (the difference between the wholesale price and the retail price is called the batch zero difference), and the difference between the purchase and sale of agricultural and sideline products refers to the difference between the purchase of the same agricultural and sideline products and the wholesale or retail price of the same kind of agricultural and sideline products.

    3. The role is different.

    Net profit is the final result of an enterprise's operation, and the net profit is more, and the company's business efficiency is good; If the net profit is less, the operating efficiency of the enterprise is poor, and it is the main indicator to measure the operating efficiency of an enterprise.

    The gross profit margin of commodity sales directly reflects the price difference level of all, major categories and certain commodities operated by the enterprise, and is the basis for accounting for the operating results of the enterprise and whether the formulation is reasonable.

    Encyclopedia - Maori.

    Encyclopedia - Net Profit.

  19. Anonymous users2024-01-20

    Gross profit is not operating profit.

    Gross Profit = (Sales Revenue - Cost of Sales) Sales Revenue.

    Operating profit = sales revenue - cost of sales + other business income - other business costs - three major expenses - business tax.

  20. Anonymous users2024-01-19

    Gross profit refers to the balance of the sales income after deducting the main costs, and the general loss is calculated as:

    Gross profit = main business income - main business cost.

    Profit generally refers to net profit, which is calculated as:

    Net profit = main business income - main business cost + other business income - other business expenses - financial expenses - operating expenses - management expenses + non-business income - non-operating expenses + investment income - investment losses - income tax.

  21. Anonymous users2024-01-18

    1. What is the difference between net profit and gross profit?

    1. The difference between net profit and gross profit includes:

    1. The definitions are different. Net profit is the total profit of the enterprise in the current period minus the amount of income tax, and the gross profit is the main business income minus the cost of the main business, depending on the profitability of the main business items;

    2. The calculation formula is different. Net profit is equal to total profit minus income tax expense, and net profit is tax profit. Gross profit is equal to revenue minus costs, and gross profit is pre-tax profit.

    2. Legal basis: Article 16 of the Interim Measures for the Audit and Management of Enterprise Economic Responsibility.

    The authenticity of the operating results of the enterprise refers to whether the accounting of the person in charge of the enterprise is accurate during his tenure, whether the scope of preparation of the financial final accounts of the enterprise is complete, whether the economic results of the enterprise are true and reliable, and whether the provision for asset impairment of the enterprise matches the asset quality. The main contents include:

    1) Whether the financial accounting of the enterprise is accurate and true, and whether there is a problem of false business results;

    2) Whether the scope, method, content and quality of the annual financial statement of the enterprise comply with the regulations, and whether there are problems such as deliberately fabricating false financial final account reports;

    3) Whether the enterprise correctly adopts the accounting recognition standard or the measurement information seepage method, whether it arbitrarily changes or abuses the accounting estimates and accounting policies, and deliberately fabricates false profits.

    Second, what are the factors that determine net profit?

    Factors that determine net profit include:

    1. Total profit refers to the total results of business activities of an enterprise in a certain period before the calculation and levy of enterprise income tax;

    2. Income tax expense refers to the amount of enterprise income tax calculated and payable by the enterprise in accordance with the tax law.

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