How to calculate the company's profit

Profit can be subdivided into gross profit, net profit and pre-tax profit. The company's profit is calculated according to the following formula:

Operating profit = operating income-operating costs-business taxes and surcharges-sales expenses-management expenses-financial expenses-asset impairment loss+fair value change loss (-fair value change loss)+investment income (-investment loss).

Operating income of extended materials: refers to the total income recognized by various businesses of the enterprise, including main business income and other business income.

Operating costs: refers to all the actual costs incurred by an enterprise in operating its business, including the main business costs and other business costs.

Asset impairment loss: the loss caused by the enterprise's provision for asset impairment.

Gains from changes in fair value: gains from changes in fair value of corporate transactional financial assets that should be included in current profits and losses.

Investment income: the income obtained by enterprises through various ways of foreign investment.

Total profit = operating profit+non-operating income-non-operating expenditure.

Non-operating income: various interests that are not directly related to the daily business activities of an enterprise.

Non-operating expenses: losses incurred by an enterprise that are not directly related to its daily business activities.

Net profit = total profit-income tax expense.

Income tax expense: the income tax and expenses confirmed by the enterprise that should be paid to the local government tax authorities according to a certain proportion of the total profits of the current period.

References:

Baidu Encyclopedia-Profit