How to calculate the formula of net profit, what is the formula for calculating net profit

Gross profit margin is the percentage of gross profit to sales revenue, and the formula is: gross profit margin = [(sales revenue - cost of sales) sales revenue] 100%. It reflects the initial profitability of the company's product sales, and is the starting point of the company's net profit.

Compared with the same industry, if the company's gross profit margin is significantly higher than the level of the same industry, it means that the company's products have high added value and high product pricing, or the company has cost advantages and competitiveness compared with its peers.

Net profit margin is the percentage of net profit to sales revenue, and the formula is: net profit margin = (net profit sales revenue) 100%. It is proportional to the net profit, and the sales revenue is inversely proportional, the enterprise in the increase of sales revenue at the same time, must correspondingly get more net profit, in order to keep the net profit margin unchanged or improved.

By analyzing the rise and fall of the net profit margin of sales, enterprises can be urged to pay attention to improving operation and management and improving profitability while expanding sales.

Operating profit margin is the percentage of operating profit to sales revenue, which is calculated as follows: operating profit margin (operating profit sales revenue) 100%. It can better describe the contribution of the company's main business to profit than the net profit margin of sales, because the net profit is obtained after adding investment income, subsidy income and net non-operating expenses on the basis of operating profit, and the sustainability of these income or losses is poor, excluding these effects can better reflect the changes in the company's profitability and the difference in the profitability of different companies.

Income Statement Calculation Formula:

1. Operating profit = main business income - main business cost - main business tax and surcharge + other business income - other business expenses - operating (sales) expenses - management expenses - financial expenses.

2. Total profit = operating profit + subsidy income + non-operating income - non-operating expenses.

3. Net profit = total profit - income tax.

Net profit refers to the total profit of an enterprise for the current period minus the amount of income tax, which is also generally referred to as after-tax profit or net income. It is calculated as follows:

Net Profit = Gross Profit (1 - Income Tax Rate);

Among them: total profit = operating profit + non-operating income - non-operating expenses;

Operating profit = operating income - operating costs - taxes and surcharges - selling expenses - administrative expenses - financial expenses - credit impairment losses - asset impairment losses + fair value change gains (or - fair value change losses) + investment income (or - investment losses);

Net profit is a basic tool to evaluate the profitability of enterprises, management performance and solvency. The net profit is small, the operating efficiency of the enterprise is poor, it is a comprehensive index that reflects and analyzes the situation of the enterprise in many aspects.

There are three formulas for calculating profits: net profit = total profit - income tax expense; Gross profit = main business income - main business cost in proportion to revenue; Profit Operating profit + net investment income + net non-operating income and expenditure 1, operating profit is greater than gross profit is greater than net profit, net profit is the final operating result of an enterprise, net profit is more, the operating efficiency of the enterprise 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. 2. Operating profit = operating income - operating costs - taxes and surcharges - sales expenses - management expenses - financial expenses - credit impairment losses - asset impairment losses + fair value change income (or - fair value change loss) + investment income (or - investment loss).

3. What is the difference between gross profit and net profit, gross profit is the profit part of the sales revenue after deducting the costs generated by the main business, and net profit refers to the company's profit retention after paying income tax in accordance with the provisions in the total profit

The three formulas for calculating profit are: net profit = total profit - income tax expense; Gross profit = main business income - main business cost in proportion to revenue; Profit Operating profit + net investment income + net non-operating income and expenditure.

Therefore, the relationship between the three is: operating profit, gross profit, net profit, net profit is the final operating result of an enterprise, the net profit is more, the operating efficiency of the enterprise 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.

Difference Between Gross Profit and Net Profit.

1. The concept is different.

Gross profit is the balance of the sales revenue (selling price) of the commercial enterprise after subtracting the original purchase price of the goods, which is also known as the difference between the purchase and sale of goods. Net profit refers to the total profit of the enterprise for the current period minus the amount of income tax, that is, the after-tax profit of the enterprise. Gross profit minus commodity circulation fees and taxes is net profit.

2. The influencing factors are different.

Gross profit is influenced by the purchase price and sales of goods**. Net profit is affected by gross profit and income tax expense.

Net Profit = Total Profit - Income Tax Expense.

There are three formulas for calculating profits: net profit = total profit - income tax expense; Gross profit = main business income - main business cost in proportion to revenue; Profit Operating profit + net investment income + net non-operating income and expenditure 1, operating profit is greater than gross profit is greater than net profit, net profit is the final operating result of an enterprise, net profit is more, the operating efficiency of the enterprise 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. 2. Operating profit = operating income - operating costs - taxes and surcharges - sales expenses - management expenses - financial expenses - credit impairment losses - asset impairment losses + fair value change income (or - fair value change loss) + investment income (or - investment loss).

3. What is the difference between gross profit and net profit, gross profit is the profit part of the sales revenue after deducting the costs generated by the main business, and net profit refers to the company's profit retention after paying income tax in accordance with the provisions in the total profit

Total profit = operating profit + non-operating income - non-operating expenses.

Profit refers to the operating results of a business in a certain period. Profit includes the net amount of income less expenses, which is directly included in the gains and losses of the current profit.

Total accounting profit refers to the profit left over by the owner of the business after paying all the factor remuneration except the capital. Accounting profit is the result of calculation according to accounting standards. The basic method of calculation is to recognize the income of the enterprise in a certain accounting period according to the realization principle, determine the cost of the same period according to the matching principle, and subtract the income from the related expense cost, that is, the profit of the enterprise in this accounting period.

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Net profit is calculated as follows: Total Profit - Income Tax Expense.

Net profit (income) is 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 income.

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.

Answer: Hello dear, the relevant calculation formula for profit is as follows (1) Operating profit operating profit = operating income - operating costs - business taxes and surcharges - sales expenses - management expenses - financial expenses - asset impairment loss Fair value change income (1 fair value change loss) 10 investment income (1 investment loss) (2) total profit, total profit = operating profit, non-operating income - non-operating expenses 3) net profit, net profit = total profit - income tax expense. Expansion: Composition of ProfitsProfit refers to the operating results of an enterprise in a certain accounting period.

Profit includes the net amount of income minus expenses, gains and losses directly included in the current profit, etc.

There are three formulas for calculating profits: net profit = total profit - income tax expense; Gross profit = main business income - main business cost in proportion to revenue; Profit Operating profit + net investment income + net non-operating income and expenditure 1, operating profit is greater than gross profit is greater than net profit, net profit is the final operating result of an enterprise, net profit is more, the operating efficiency of the enterprise 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. 2. Operating profit = operating income - operating costs - taxes and surcharges - sales expenses - management expenses - financial expenses - credit impairment losses - asset impairment losses + fair value change income (or - fair value change loss) + investment income (or - investment loss).

3. What is the difference between gross profit and net profit, gross profit is the profit part of the sales revenue after deducting the costs generated by the main business, and net profit refers to the company's profit retention after paying income tax in accordance with the provisions in the total profit

The formula for calculating net profit is: net profit = total profit - income tax expense, the details are as follows:

1. Net profit is the amount of the total profit of the enterprise in the current period minus the income tax, that 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.

It refers to the company's profit retention after paying income tax in accordance with the provisions in the total profit, which is also known as after-tax profit or net profit;

2. The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense. The formula for calculating net profit is: net profit = total profit - income tax expense.

Net profit is the final result of an enterprise's operation, and the more net profit, the better the operating efficiency of the enterprise; 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 a Huai's source enterprise.

Legal basis]:

Article 81 of the Company Law of the People's Republic of China.

The articles of association of the company shall contain the following matters:

1) The name and domicile of the company;

2) the company's business scope;

3) the method of establishment of the company;

4) the total number of shares of the company, the amount per share and the registered capital;

5) The name of the promoter, the number of shares subscribed, the method of capital contribution and the time of capital contribution;

6) The composition, powers and rules of procedure of the Board of Directors;

7) the legal representative of the company;

8) The composition, powers and rules of procedure of the board of supervisors;

9) the company's profit distribution method;

10) the reasons for the dissolution of the company and the liquidation method;

11) the company's notice and announcement measures;

12) Other matters that the general meeting of shareholders deems necessary to stipulate.

Article 100 Hail 84.

The liquidation team shall exercise the following functions and powers during the liquidation period:

1) Liquidate the company's property, prepare the balance sheet and property list respectively;

2) Notify and announce creditors;

3) To deal with the unsettled business of the company in connection with the liquidation;

4) To settle the taxes owed and the taxes incurred in the process of liquidation;

5) Liquidation of creditor's rights and debts;

6) Dispose of the remaining property of the company after paying off its debts;

7) Participate in civil litigation activities on behalf of the company.