Gross Profit

Most business owners understand profitability from a fundamental standpoint. If the revenue from sales covers your expenses, you’re turning a profit. Profits mean positive cash flow. Positive cash flow helps keep your business in operation. However, business owners should look beyond a simple profit naira amount. By calculating and comparing metrics, owners can identify the areas of the business that are working well, and those that need improvement. Get the full scoop on gross profit vs net profit with this guide.

Gross Profit vs Net profit

Before we get into the difference between gross profit and net profit, let’s …