The company's net profit is calculated after deducting income tax from the total profit. Specifically, first calculate the profit of the main business, that is, the income of the main business MINUS the cost of the main business, taxes and surcharges; Then add the profit of the main business and other business income, and then subtract other business expenses, management expenses and financial expenses to get the operating profit; Then on the basis of operating profit, add non-operating income and subtract non-operating expenses to get the total profit; Finally, the income tax is deducted from the total profit to get the company's net profit. Net profit, also known as after-tax profit or net income, is the retained profit of an enterprise after paying income tax.
Gross profit calculation formula:
1, gross profit = sales revenue-sales cost;
2. Sales revenue refers to the total income obtained by the company through selling goods or providing services within a certain period of time;
3. The cost of sales includes direct costs such as direct materials, direct labor and manufacturing expenses;
4. Gross profit reflects the company's basic profitability in selling goods or providing services;
5. Gross margin = gross profit/sales revenue, which is used to measure the proportion of gross profit included in unit sales revenue.
To sum up, the company's net profit is the net profit after deducting income tax from the total profit, including the comprehensive influence of main business profit, other business income, other business expenses, management expenses, financial expenses, non-operating income and non-operating expenses. Net profit, also known as after-tax profit or net income, represents the actual profit after the enterprise pays income tax.
Legal basis:
Company Law of the People's Republic of China
Article 166
When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit 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statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.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year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.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.