What Is Revenue Minus Expenses

4 8 21 contents1 revenue definition 2 revenue examples 3 operating revenue definition 4 operating revenue examples 5 non operating revenue definition 6 non operating revenue examples 7 expenses definition 8 expenses examples.

What is revenue minus expenses. The net profit margin is an expression of the net profit as a percentage of the revenue where the net profit is the revenue minus all expenses. A positive number indicates that you make more than you spend and therefore are able to save money. People often refer to net income as the bottom line as it is the last line item on an income statement. The three main profit margin metrics are gross profit total revenue minus cost of goods sold cogs operating profit revenue minus cogs and operating expenses and net profit revenue minus all expenses.

Gross income is basically revenues and gains minus expenses and losses. The profit margin is a ratio of a company s profit sales minus all expenses divided by its revenue. Net income goes even further than net gross margin because you deduct all other expenses including overhead and taxes. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi.

Revenue is the total amount of income generated by a company. The formula for net income is simply total revenue minus total expenses. The formula for net income is simply total revenue minus total expenses. Net income is gross income minus taxes.

Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold. Profit is directly related to products and services. Derived from gross profit operating profit reflects the. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall.

This figure indicates whether your business is profitable.