Net profit equals

2022-05-20 0 By

Net profit = total profit – income tax expense.1. Net profit refers to the total profit of an enterprise in the current period after deducting income tax, that is, the after-tax profit of the enterprise.Income tax is to show the enterprise will realize the total profit according to the standard that income tax law sets to calculate the tax of pay to the country.It is a deduction from the total profits of the business.2. The difference between eBIT and net profit is that eBIT does not deduct interest or income tax, while net profit is eBIT after deducting interest and income tax.3. For the investors of an enterprise, net profit is the basic factor to obtain the return on investment, while for the managers of an enterprise, net profit is the basis for operation and management decisions.At the same time, net profit is also a basic tool to evaluate the profitability, management performance and even debt paying ability of an enterprise, and it is a comprehensive indicator to reflect and analyze the various conditions of an enterprise.