Arbitrage
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Gross profit is sales - COGS, so you figure out the profit after the raw goods/direct labor.
Net profit takes into account a whole bunch of other factors. It's how much the company actually made and can "keep" in the form of retained earnings.
-SG&A
-interest expense on debt
-taxes
-other one-time income or expenses |
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lj1
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Gross profit is measured without taxes and expenses. Net profit refers to profit after taxes and expenses. |
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themanwhorides
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Turns out, one of the biggest search phrases that land folks on this site is “what is the difference between gross and net,” which I answered flippantly before. For the benefit of newbies, here’s a quick primer in record label accounting 101:
In business, “gross” refers to the amount of money that comes in the door. “Net” is your profit — what you keep after you cover all your expenses. In most companies, it’s pretty simple. If you run a lemonade stand and it costs you $20 to buy supplies on a day that you made $100, your gross is $100, and your net is: $100 - $20 = $80.
Pretty simple, right? |
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harish_usa
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Gross profit is before deducting expenses and taxes. |
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jaywalker_69
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Net profit is the gross profit after subtracting costs and expenses. |
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Pinoy
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Gross is what you earn, net is after the government have stopped robbing you |
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Nancy Kay
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gross profit is ALL THE MONEY THAT CAME IN TO THE BUSINESS other than capital contributions or borrowed funds
net profit is ALL THE MONEY LEFT OVER FROM THE GROSS PROFIT AFTER PAYING ALL EXPENSES (INVENTORY, FACILITIES, LABOR, ETC.) |
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Pigskin Princess
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Gross is before taxes & expenses, Net is after (what you pocket) |
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stretch7823
 |
before and after taxes |
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rogers_andrew
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Gross is before interest and taxes I believe. |
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D
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Gross profit is profit before factoring in expenses. Net is after. |
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mllewty
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gross profit is the amount you have when you take away what you have made eg £100 to what you have spent eg £40 your gross profit is therefore £60
however your net profit sometimes takes into account items such as labour and sundries and vat which must be taken off your gross profit so if i spent £20 on new tools as well my net profit would be £40
ok
love mandy |
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eddyrealtor
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Gross is what you earn, net is what you get |
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slappy
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Gross profit would be the total amount of money you make not taking expenses into account. The net figure is the gross, less expenses. |
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