You take away the revenue with the total cost of you sales
Net profit represents the number of sales dollars remaining after all operating expenses. It also referred as net income or net earnings.
you should type this in Google: Trading, Profit & loss a/c Format It should be explained with all the examples given
subtract sales revenue from total costs
revenue - expenses= profit
Net profit margin is calculated as net income divided by sales.
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
net profit/sales
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
Net Profit Before Tax(N.P.B.T.) = Total sales - Total Expenses.
(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%
ROS= NET PROFIT/ SALES
Gross Profit/Net Sales = Gross Profit Margin.
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
The profit and loss account is the account that can be used to calculate the net loss.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Gross and Net profit are virtually the same. They both calculate EBT, earnings before taxes - all overhead and salaries.