What is the difference between Gross Profit and Net Profit?
Gross Profit is revenue minus direct production costs (COGS); Net Profit is what remains after deducting all operating expenses, interest, and taxes.
Gross, operating and net profit margins after costs and taxes.
Constructs comprehensive income statements evaluating gross revenue, cost of goods sold, operating expenses, and net profit margins.
Gross Profit = Net Sales - COGS | Operating Profit = Gross Profit - OPEX | Net Income = Operating Profit - Taxes & Interest
Summarizes revenues, costs, and expenses incurred during specified financial quarters or annual fiscal periods.
Inputs: Gross Sales = ₹5,00,000 | COGS = ₹2,50,000 | Operating Expenses = ₹1,20,000 | Taxes = ₹26,000
Summary: Revenue = ₹5,00,000 | Gross Profit = ₹2,50,000 | Net Income = ₹1,04,000 | Net Profit Margin = 20.8%
Gross Profit is revenue minus direct production costs (COGS); Net Profit is what remains after deducting all operating expenses, interest, and taxes.
Ongoing indirect costs required to run a business, including office rent, staff salaries, marketing, insurance, and utilities.
P&L records revenues and expenses when earned or incurred (accrual accounting); Cash Flow tracks actual physical cash entering and leaving bank accounts.