What does net worth, net profit mean

The difference between a company's assets and liabilities.

Net profit is the profit after income tax is remitted.

Shareholders' equity is assets minus liabilities.

Assets --- Liabilities == Owners' Equity ; Owner's equity--- reserves, public welfare funds, etc. that must be accrued according to national regulations == net assets.

The relationship between net assets and net profits: net profit is an integral part of net assets, which is an economic management work that organizes the financial activities of enterprises and handles financial relations according to the financial law system and the principle of management level. 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.

Net profit is calculated as net profit = total profit - income tax expense. Net profit is the final result of an enterprise's operation, and the net profit is more, and the company's operation chain benefits are 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.

Net assets are assets that are owned by the business and can be freely disposed of, i.e., owner's equity. The net assets of the enterprise before the round know refers to the net amount of the total assets of the enterprise minus the liabilities, which is composed of two parts, one part is the capital invested at the beginning of the enterprise, the orange clear includes the premium part, and the other part is created by the enterprise in the operation, and also includes the assets that accept donations, which belong to the owner's equity.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as tax reduction, exemption, tax refund and tax compensation, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax collection, suspending, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Article 4 Units and individuals that are liable to pay taxes as stipulated by laws and administrative regulations are taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

1. The definitions are different.

Net income refers to the total profit of a person or a company, i.e. the balance of income or income of an individual or company after deducting business costs, taxes and other expenses.

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.

2. The calculation method is different.

Net income is calculated as non-operating income such as operating income - non-recurring income.

Net profit is calculated as net profit = total profit - income tax expense.

3. The problems reflected are different.

Net income reflects the total inflow of economic benefits generated by an enterprise in the course of its daily operations, such as selling goods, providing services and transferring the right to use assets. The level of net income does not mean that the operating efficiency of the enterprise is good or bad.

Net profit reflects 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.

Net assets are the total assets of a business minus liabilities. Net profit refers to the total profit of the enterprise for the current period minus the amount of income tax. The net worth is what you have, and the net profit is what you earn.

Net worth is the net amount of all your assets minus your liabilities.

Net profit is the total profit you make as a result of an investment minus all expenses and taxes.

The two are not to be confused.

Net worth refers to a company or not. The group says it owns the plant, equipment, cash and so on. Well, something purely your own.

The net profit is the pure cost after deducting labor costs, property fees, real estate fees, and all expenses from the products produced by uh. At. The difference between the two.

Net assets refer to the owner's equity or equity capital. The net assets of an enterprise refer to the net amount of the total assets of the enterprise minus the liabilities, which is composed of two parts, one part is the capital invested at the beginning of the enterprise, including the premium part, and the other part is created by the enterprise in the course of operation, and also includes the assets that receive donations, which belong to the owner's equity.

Net profit refers to the total profit of an enterprise for the current period after deducting income tax.

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 known as after-tax profit or net income. Net profit is calculated as follows: Net Profit Total Profit (1 Income Tax Rate).

Shareholders' equity, also known as net assets, refers to the remaining part of the company's total assets after deducting liabilities. For example, on the balance sheet of "a certain company" at the end of 2003, the total assets were 4.056 billion yuan and the liabilities were 74.2 billion yuan, and the difference between the two was shareholders' equity. That is, 3,314 billion yuan, which is also the net assets of "a company", and shareholders' equity is a very important financial indicator, which reflects the company's own capital.

The net asset value per share is the carrying amount of each share**, which reflects the shareholders' effective interest in the company's assets. The formula is:

Total Assets - Total Liabilities) Number of common shares.

Theoretically, when a company sells all its assets and pays off all its liabilities, its net asset value is what shareholders can get back. However, we should note that since the listed company is freely traded in the market, its share price can be higher or lower than the net asset value per share. Generally speaking, if the stock price is lower than the net asset value per share, this ** can be bought; On the contrary, if the stock price is much higher than the net asset value per share, this ** cannot be bought.

However, it is not enough to make a buying and selling decision at this value, and we should also consider the company's earnings prospects.

Net profit (earnings) is the basis for projecting future cash flows. The estimation of future cash flow is carried out through the preparation of cash budgeting, which is an important tool to ensure the management of cash receipts and expenditures. Among them, the net profit and loss adjustment method is one of the important methods for cash budgeting.

It is a method that takes the net income determined in the estimated income statement according to the principle of accounting for the occurrence of equity and liability as the starting point for cash preparation, and adjusts the net income for the current period to net cash flow by adjusting the accounting transactions that affect the profit and loss and cash balance on a case-by-case basis.

Net worth and net profit are two different concepts. Net assets refer to the amount of assets of the enterprise after deducting liabilities, which is generally the total amount of owners' equity, while net profit refers to the total profit of the enterprise in the current period after deducting income tax, that is, the profit after tax of Zhaojian Enterprise. Generally speaking, net profit is a part of the net assets of a business.

Now the financial issue is a relatively important issue, for total assets, refers to all the assets owned or controlled by the enterprise that can bring economic benefits. Net assets refer to the assets that can be freely used by the enterprise, and total assets and net assets are not the same concept. 1. The difference between return on net assets and return on net assets Return on equity is the ratio of net profit to average net assets of an enterprise, reflecting the level of remuneration received by owners' equity.

Return on equity = net interest rate on assets Equity multiplier. Return on net assets is the ratio of the net profit margin to the owner's equity of the enterprise in a certain period, which reflects the size of the investment return received by the owner of the enterprise. Return on equity = net profit 100% of average gross net assets.

2. The principle of net assets is how net assets = assets - liabilities (increased or decreased due to the impact of annual profits and losses) The amount of owner's equity at the end of the enterprise is "not equal to or represents" the market value of net assets. Since it is the market value (usually the current market value), of course "does not equal or represent" the amount of owner's equity at the end of the business period (in this case, the historical cost). Net assets are the owner's equity, which refers to the economic interest enjoyed by the owner in the assets of the enterprise, and its amount is the balance of the assets minus the liabilities.

Owners' equity includes paid-in capital (or share capital), capital reserve, surplus reserve, and undistributed profits. The calculation formula is: net assets = owners' equity (including paid-in capital or share capital, capital reserve, surplus reserve and undistributed profits, etc.) = total assets - total liabilities.

Net assets are the excess of assets over liabilities of an enterprise group, that is, the net value of all assets minus all liabilities. Net assets represent the value of the property of the owners (business owners or shareholders) of a business group in the business. It includes share capital, provident fund (surplus provident fund, capital reserve), undistributed profits, etc.

Since the net asset value of an enterprise group belongs to the shareholders, it is called "shareholders' equity" in accounting. It is an important indicator that reflects the operating performance of an enterprise group. Net assets are affected by the owner's original investment, additional investment, profits and losses incurred by the enterprise group subsequently, and the amount withdrawn from accumulated profits or investments.

In the basic data of this plan, in order to reflect the equity and credit risk of the shareholders of the enterprise group, only tangible assets are included. As for intangible assets such as the reputation of enterprise groups and patent rights, they are not involved in the calculation for the time being. Considering that the comprehensive evaluation of the chaotic force should reflect the reality of the sustained and stable development of the enterprise group, the net assets are calculated on the average value at the end of the three years.

That is: net assets = (net assets at the end of the current year + net assets at the end of the previous year + net assets at the end of the year two years ago) 3 The year in the calculation formula is defined as the same as turnover. If the entity view of profit is adopted, the net assets are equal to the shareholders' equity plus creditor's rights; If the ownership of profits is viewed, net assets are equal to shareholders' equity.

Enterprise Income Tax Law of the People's Republic of China

Article 9. The part of the public welfare donation expenditure incurred by the enterprise within 12 of the total annual profit is allowed to be deducted in the calculation of taxable income;

The part exceeding the total annual profit of 12 shall be allowed to be carried forward and deducted from the source of transportation in the calculation of taxable income within the next three years.