Net profit = total profit ×( 1- income tax rate)
Total profit = operating profit+non-operating income-non-operating expenditure
Operating profit = operating income-operating costs-business taxes and surcharges-period expenses-asset impairment loss+fair value change loss-fair value change loss+investment income (-investment loss)
Extended data:
Net profit margin refers to the percentage of operating net profit to net sales or the percentage of invested capital. This percentage can comprehensively reflect the operating efficiency of an enterprise or an industry. In accounting, profit can be divided into gross profit (the difference between sales volume and cost of goods sold), operating profit (the difference between gross profit and operating expenses) and net profit (the difference between operating profit and income tax). Different periods, different industries and different enterprises have different profits.
In enterprises with higher profits, employees can get higher wages and bonuses. From the profit level, we can predict the economic development trend. Profit growth, employment and income will generally increase, while profit decline, employment and income will also decrease. Profits encourage people to invest their savings in profitable enterprises or industries.
Baidu encyclopedia-net profit rate