The Key Differences Between Gross Profit vs Net Profit That Could Unlock Your Success! – Profitspear
Understanding the difference between gross profit and net profit is essential for making smarter business decisions. Gross profit reflects the earnings left after subtracting the cost of goods sold (COGS) from revenue, giving insight into a company's core production efficiency. Net profit, on the other hand, accounts for all expenses—including operating costs, taxes, and interest—providing the bottom line that truly reflects overall profitability. By analyzing both figures, businesses can ide