(1) Operating income consists of main business income and other business income.
(2) Operating profit, operating income MINUS operating costs (main business costs and other business costs), business taxes and surcharges, sales expenses, management expenses, financial expenses and asset impairment losses, plus fair value change income and investment income, is operating profit.
(3) Total profit, operating profit plus non-operating income, minus non-operating expenses, is the total profit.
(4) Net profit, the total profit minus income tax expenses, is the net profit.
1. Net profit refers to the total profit of the enterprise in the current period minus income tax, that is, the after-tax profit of the enterprise. Income tax refers to the tax that enterprises calculate and pay to the state according to the standards stipulated in the income tax law. It is the deduction of the total profit of the enterprise.
2. It refers to the retained profit of the company after paying the income tax according to regulations, which is generally also called after-tax profit or net profit. The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense.
3. Net profit is the final result of business operation. The more net profit, the better the operating efficiency of the enterprise. If the net profit is small, the operating efficiency of the enterprise will be poor, which is the main index to measure the operating efficiency of the enterprise.
4. This indicator is the ratio of net cash flow generated by operating activities to net profit. The net profit provided by the income statement is confirmed on the premise of accrual basis, matching principle, historical cost principle and currency unchanged.
5. Due to the accuracy of judgment and estimation, inflation, capital expenditure in a certain accounting period, inventory turnover rate and commercial credit, there are differences between net profit and cash flow, forming different levels of "net income quality".
Legal basis: Article 166 of the Company Law of People's Republic of China (PRC), when distributing the after-tax profits of the current year, the company shall withdraw 10% of the profits and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.
If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting.
After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held.
If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company.
The company's shares held by the company shall not be distributed.