Understanding gross profit and net profit

Gross Profit and Net Profit are some of the most important measures to determine the profitability and the financial performance of a business. It reflects the efficiency of a business in terms of making use of its labour, raw material and other supplies. By understanding GP & NP you can ensure your business is in a position to thrive and grow from the very beginning.

The figure is common and much needed as a basic means of measuring your business profit. The ways you can analyse and use the gross profit figures are endless. In the big picture view, gross profit simply shows how much money you make against the cost of the product so you can project and interpret profit potential.

This Toppa Tips course will ensure you fully understand gross and net profit. You can enrol today or subscribe to gain full access to all of the Toppa courses.