What Is a Net Profit?

Net profit refers to the total amount of current profit of the enterprise minus the income tax, that is, the profit after tax of the enterprise. Income tax refers to the tax that the company calculates and pays to the state in accordance with the standards stipulated by the income tax law. It is a deduction for total corporate profits. ^[1]

Net profit

Corporate income tax rates are statutory. The higher the income tax rate, the lower the net profit. China now has two types of income tax rates. One is the general enterprise income tax rate of 25%, that is, 25% of the total profit must be submitted to the state finance as tax; the other is the preferential tax rate for foreign-funded enterprises and some high-tech enterprises. The rate is 15%. When the operating conditions of the enterprise are comparable,

After-tax profit (ie net profit) is a very important

It refers to the ratio of net cash flow to net profit generated in production and operation. The larger the indicator, the better, indicating sales

This indicator is generated by business activities

1. Net profit (income) is the expected future

Net profit (revenue) is recognized in installments on an accrual basis and is formed based on the ratio of expenses to income and causality. The cash flow reflects the actual cash in and out of the company. The difference between net income and cash flow is not only reflected in the quantity, but also in the

Generally, domestic enterprises will publish information on net profits in the profit distribution tables of quarterly, intermediate and annual reports. It is generally divided into single quarter net profit and net profit from the beginning of the year to the deadline. For listed companies, generally check the net profit attributable to the parent company.