What is gross profit and net profit?

Answer Gross profit represents the excess of your sales or revenue over the cost you incurred to make or manufacture products and services. Your net profit represents all income remaining after all expens... Read More »

Top Q&A For: What is gross profit and net profit

How to Calculate Gross Profit for Loss of Profit Insurance?

Many businesses purchase loss-of-profit insurance, also called “business interruption” insurance, to cover a loss of ability to operate due to circumstances outside of the business’s control,... Read More »

Why Is Economic Profit a Better Measure of Profit Than Accounting Profit?

Although rarely acknowledged, you can measure profit in more than one way. Sometimes numbers can deceive you, and this is the case when it comes to accounting profit, which merely shows profit on t... Read More »

What Is Gross Profit on Sales?

Corporate finance specialists compute a firm's gross profit on sales, or gross profit, to gauge the company's ability to generate revenues in the short term. A lender or supplier may calculate gros... Read More »

What is a gross profit ratio?

Gross profit ratio is a number that determines how much a business can cut its sale prices without suffering losses. The formula used to determine gross profit ratio is: Gross Profit Ratio = (Gros... Read More »