1. Income tax expenses refer to the current income tax expenses and deferred income tax expenses that should be deducted from the total profits of the current period according to the requirements of the Accounting Standards for Business Enterprises. Net profit refers to the retained profit of the company after paying the income tax according to the regulations, which is commonly referred to as "after-tax profit" or "net income". 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.
2. It is the main index to measure the operating efficiency of enterprises. Net profit is a basic tool to evaluate the profitability, operating performance and even solvency of an enterprise. 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 a comprehensive index to reflect and analyze all aspects of the enterprise. Net profit margin refers to the percentage of net operating profit to net sales or invested capital. This ratio 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 revenue 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). The profits of different periods, industries and enterprises are different.
3. In enterprises with higher profits, employees can get higher wages and bonuses. The economic development trend can be predicted from the profit level. When profits increase, employment and income will generally increase, and when profits decrease, employment and income will also decrease. Profits encourage people to invest their savings in profitable enterprises or industries. At the same time, profit is also the biggest source of funds for economic growth. Although the absolute value of profit may reach a new level every year, the profit rate may not necessarily increase.
The calculation formula of enterprise's net profit rate: net profit rate = (net profit/main business income) ×100%; 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).