Gross profit is the currency amount remaining after cost of goods sold is deducted from net sales revenue. Both need the same reporting period, excluding VAT that is not revenue. Gross margin expresses this amount as a percentage.[1]
Gross profit still needs to cover other expenses, including general selling and administration. It is neither freely available bank cash nor net profit. Purchasing stock and receiving payment for its sale may also occur in different periods, so profit amounts should not be read as a record of cash movements.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.