Gross profit, that is, gross profit, is the balance of commodity sales income (selling price) of commercial enterprises MINUS the original purchase price of commodities, also known as the difference between the purchase and sale of commodities.
Net profit is net profit, which refers to the total profit of the enterprise in the current period MINUS income tax, that is, the after-tax profit of the enterprise. Gross profit MINUS commodity circulation fee and tax is the total profit.
Second, the situation reflected is different.
The percentage of gross profit in commodity sales revenue or operating income is called gross profit margin. The gross profit margin of commodity sales directly reflects the price difference level of all categories and some commodities operated by enterprises, and is the basis for accounting whether the operating results and price setting of enterprises are reasonable.
Net profit is the final result of enterprise management. 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. Net profit is also a basic tool to evaluate the profitability, operating performance and even solvency of enterprises, and it is a comprehensive index to reflect and analyze many aspects of enterprises.
Third, the calculation method is different.
Gross profit = price excluding tax-purchase price excluding tax = product sales revenue-actual cost at the time of sales.
Net profit = total profit-income tax expense
Fourth, the influencing factors are different.
The influencing factors of gross profit are the purchase price and selling price of goods.
The influencing factors of net profit are total profit and income tax expense.
Five, different tax treatment
Gross profit is pre-tax profit and net profit is after-tax profit.