gross profit
Sales minus expenses
Gross profit is revenue minus the direct costs of producing goods or services sold.
It excludes overhead, taxes, and other indirect expenses—those get subtracted later to reach net profit.
The company's gross profit looked healthy, but after accounting for administrative costs, they barely broke even.
Also called gross margin when expressed as a percentage.
- earningsMoney gained from work
- income statementPeriodic profit-loss report
- balance sheetAssets-liabilities-equity report
- expenseMoney paid out
- markupAdded percentage for profit
variable costs · fixed costs · contribution margin · margin · cash flow · overhead costs · cost accounting · financial statement · direct costs · net · corporate finance · spreadsheet · retail · turnover · ledger · wholesale · sales · selling price
- financial analysisnet income, EBITDA, ROI, net margin, contribution margin
- business financeaccounting, balance sheet, revenue stream, budget, cash flow
- business termsfranchising, revenue stream, board meeting, markdown, subsidiary
- earningsearnings, earnings per share, income, earnings call, gains
- incomesalary, earnings, income, wages, pay
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
gross profitnet profit
Income after subtracting costs
net income · net earnings · bottom line · operating profit · operating income
gross, profit, profits, profitable, nonprofit, profitless, unprofitable, profitably, profitability