Types of profit

• Gross profit = Revenue - cost of sales
• operating profit = gross profit - operating expenses
• Statement of comprehensive income = a sum of a company's net income
• net profit = operating profit - expenses
• gross profit margin = gross profit / sales revenue x 100
• Operating profit margin = Operating profit / Sales revenue x 100
• Net profit margin = Net profit / sales Revenue x 100
• Ways to improve profitability = reduce costs, increase sales, improve efficiency, improve quality
• Profit vs cash = profit is the amount of money left after all expenses have been paid , whereas cash is the amount of money available to pay for the business
• Gross Profit =The difference between revenue and the costs directly related to production.
• Operating Profit = The difference between the gross profit and the  indirect expenses involved in operating the business
• Net Profit = The difference between the operating profit and any Interest paid and received, as well as any One-off costs