Net profit refers to the operating results of an enterprise in a certain accounting period, including operating profit, total profit and net profit.

Net income = total income-total expenditure

2. Net profit

Profit is generally divided into three parts: operating profit, total profit and net profit. Net profit is the balance of the total profit of the enterprise after deducting income tax expenses, that is, the after-tax profit of the enterprise.

(1) Total profit = operating profit+net non-operating income and expenditure.

(2) Operating profit = operating income-operating costs-operating taxes and surcharges-sales expenses-management expenses-financial expenses+net income from investment+gains and losses from changes in fair value-asset impairment losses.

(3) Net profit = total profit-income tax expense

3, the difference between the two

(1) Net income includes net profit, that is, net profit is only a part of net income.

(2) The net profit is the final result of the enterprise's operation, and the more the net profit, the better the enterprise's operating efficiency; 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. On the other hand, net income cannot directly show the operating efficiency of enterprises.

Extended data:

Net profit is a very important economic indicator. For investors of enterprises, net profit is the basic factor to get the return on investment, and for managers of enterprises, net profit is the basis for making business decisions. At the same time, 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.

References:

Net operating income _ Baidu Encyclopedia

Net profit _ Baidu Encyclopedia