What does gross profit mean and what is the difference between gross profit and net profit

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.

1. Gross profit = sales revenue - cost of sales (excluding tax income and costs) 2. Net profit (net profit) = total profit - calculation of income tax expansion data profit.

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. Because it has not subtracted the commodity circulation fee and tax, it is not net profit, so it is called gross profit.

Net profit, also known as net income, is an accounting term commonly used in a business to refer to the company's total revenue minus all related expenses at a given time. The amount of net profit is closely related to the quality of the company's operation.

One counts sales, one doesn't.

Mori is Kogoro quack.

Gross profit = sales revenue - product cost.

Net profit = sales revenue - fixed expenses - variable expenses - income tax.

The concept of cost: for example, the shopping mall has rent + deduction points, in which the rent is fixed, and the deduction point is the variable cost; Another example is the guarantee + deduction point, then you can't complete his guarantee, which is a fixed cost, and if you exceed the guarantee task, it is a variable cost;

1) What is a fixed cost: that is, a fixed cost, such as the basic salary of personnel, the minimum guarantee, etc., that is to say, when the performance is 0, you must incur expenses, or you sell 10,000 or 1 million It has nothing to do with it;

2) Variable costs are: expenses that will change as long as sales change; For example, if you sell a product, there is a cost, even if you give her a box, it will generate money. Including: commission, shopping mall deductions, taxes (business tax and surcharges), cost of sales, etc.;

Gross profit = operating income - operating costs.

Net Profit = Gross Profit - Period Expenses - Income Tax.

First, the calculation method is different.

1. Gross profit: gross profit = main business income - main business business into rolling trousers.

2. Net profit: net profit = gross profit - business tax and surcharge three fees asset impairment loss non-recurring profit and loss - income tax.

Second, the content is different.

1. Gross profit: the balance of the sales revenue of commercial enterprises minus the original purchase price of goods.

2. Net profit: The company's profit is retained after paying income tax in accordance with the provisions of the total profit, which is also known as after-tax profit or net income.

Third, the characteristics are different.

1. Gross profit: If the gross profit is not enough to compensate for the circulation expenses and taxes, the enterprise will incur losses. The percentage of gross profit to the revenue from the sale of goods or operating income is called gross margin. Gross profit margin is generally divided into comprehensive gross profit margin, classified gross profit margin and individual commodity gross profit margin.

2. Net profit: 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.

Encyclopedia - Net Profit.

Encyclopedia - Maori.

1. Gross profit.

Generally refers to gross profit, the balance of the sales revenue (selling price) of the commercial enterprise minus 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.

Because it has not yet subtracted the commodity circulation fees and taxes, it is not a net profit, so it is said that the gross profit is leaked and hungry.

2. Net profit is also known as "net profit", "net profit" or "net income" and "net profit". Symmetry of "Maori". It is the net income of the production and operation of the enterprise. The total income of the commercial enterprise is deducted from the sales tax and education fee payable from the internal and external expenses of the commercial enterprise.

plus the income of the association minus the expenses of the association, that is, the net profit of the enterprise. It is the final financial result of all economic activities of the entire enterprise.

The official website shall prevail.

What is the difference between gross profit and net profit:

Gross profit = main business income - main business cost;

Net profit = main business income - main business cost - management expenses, operating expenses, etc.

Gross profit is derived from the main business products after deducting costs, and net profit is "net income" after deducting taxes and non-recurring losses

When a bird weighs its feathers together, it's Maori. The weight of the hair is the net profit.

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

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

Gross profit is the balance of the sales revenue (selling price) of the commercial enterprise minus the original purchase price of the commodity, which is also known as the difference between the purchase and sale price of the commodity. 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. Gross profit minus commodity circulation fees and taxes is the profit.

The differences between gross profit and net profit are as follows:

1. The percentage of gross profit in the sales revenue or operating income of goods is called gross profit margin. 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. Net profit is the final result of an enterprise's operation, and the net profit is more, and the company's operating 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.

Net profit is also a basic tool for evaluating the profitability, management performance and solvency of an enterprise, and it is a comprehensive indicator that reflects and analyzes the multi-faceted situation of the enterprise.

Erzhou Pi quiet, calculation method is different, gross profit = selling price excluding tax - purchase price excluding tax = product sales revenue - actual cost net profit at the time of sale = total profit - income tax expense.

3. Influencing factors: The influencing factors of different gross profit are the purchase price and sales of goods**. Net profit is affected by total profit and income tax expense.

Fourth, the tax treatment is different, the gross profit is the pre-tax profit, and the net profit is the after-tax profit.