What is gross profit? Is gross profit equal to total profit?

Gross profit = sales revenue-sales cost, and gross profit is not equal to total profit.

Calculation of profit:

1, main business profit = main business income-main business cost-main business tax and surcharge

2. Profit from other industries = other business income-other business expenses.

3. Operating profit = main business profit+other business profit-operating expenses-management expenses-financial expenses.

4. Total profit = operating profit+investment income+subsidy income+non-operating income-non-operating expenditure.

5. Net profit = total profit-income tax

Extended data:

Gross profit: refers to the difference between sales revenue and sales cost, that is, operating profit or main business profit. In short, for example, if you sell a piece of clothing and the cost of 100 pieces of clothing is 20 pieces, then the gross profit at this time is 80 yuan.

Net profit (income) refers to the company's retained profit after paying income tax according to regulations, which is usually called after-tax profit or net income.

Simply put:

Gross profit means that when you sell a dress, the purchase price of the dress is 20 yuan, and when you sell 50 yuan, your gross profit is 30 yuan. Selling clothes requires paying shop rent, round-trip travel expenses for purchasing goods, and some expenses incurred by opening a shop. These should be included. Subtract your expenses from 30 yuan gross profit, and the rest is net profit.

Calculation method of gross profit and net profit

Gross profit = sales price-purchase price of raw materials-labor cost

Net profit = gross profit-income tax

Net profit (operating profit) = operating gross profit (gross profit)-operating expenses-asset impairment loss+net income from changes in fair value+net income from investment.

Gross profit margin calculation formula:

Gross profit margin = (excluding tax sales revenue-excluding tax cost)/excluding tax sales revenue.

Gross profit = sales revenue excluding tax-cost excluding tax

Sales revenue = gross profit+cost including tax

Price =a/( 1-30%)

Gross profit is used to estimate approximate income data, and net profit is the final result of enterprise 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.