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Gross means 'before', net means 'after'. Gross profit = sales - cost of sales Net profit = sales - cost of sales - overheads (e.g. telephone, electricity) So gross profit is before deductions, whereas net profit is after all the deductions.
net profit
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Net profit of current fiscal year added in capital because it is part of owners capital because owners have invested capital to earn profit.
net profit
Gross means 'before', net means 'after'. Gross profit = sales - cost of sales Net profit = sales - cost of sales - overheads (e.g. telephone, electricity) So gross profit is before deductions, whereas net profit is after all the deductions.
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
net profit is a profit after tax(PAT)
Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%
Net Profit Margin = Net Profit/ Sales Revenue X 100
Total revenue minus total expensives
(Net profit/Net Revenue) * 100 = Net Profit Percentage Ex: Net Revenue = 10,000 USD Expenditure = 7500 USD Profit = 2500 USD Profit Percentage = 2500/10000 * 100 = 25%
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues