Net Profit is the relationship between income and expenses. Simply put NET INCOME = Total Revenue - Total Expenses. For a merchandising business (one that sells products instead of services) the formula is a little more complex.
Total Revenue
- Cost of Merchandise Sold (this is another formula)
= Gross Profit
Gross Profit
-Expenses
= Net Income
If you are talking about a corporation you would also have to subtract Federal Income Tax before determining Net Income
Economic profit is when revenue exceeds total cost of inputs. Normal profit, on the other hand, is net profit less costs.
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
Deducting direct costs from revenues is gross profit while deducting all other remaining cost we get net profit.
Both profit maximization and wealth maximization have the objective of increasing the net worth.
I bought six apples for one dollar and sold each apple for a quarter, making a fifty-cent profit.Gross profit minus expenses equals net profit.
net profit
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
(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
Yes. Net income is generally calculated the same way on net profit.
Net profit margin is calculated as net income divided by sales.
profit