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Examining the differences between gross and net income can be an important method for examining potential stock investments. A company’s ability to limit expenses and convert the gross profits ...
Gross Income vs. Net Income. ... The bottom line is that understanding the difference between gross income and net income is key to managing your finances effectively. Gross income is the total ...
It is opposed to net income, defined as the gross income minus taxes and other deductions (e.g., mandatory pension contributions). For a business, gross income (also gross profit , sales profit , or credit sales ) is the difference between revenue and the cost of making a product or providing a service, before deducting overheads , payroll ...
Both gross income and net income can refer to an individual and a business. For individuals or employees, gross income is the total pay you earn from employers or clients before taxes or other ...
A net (sometimes written nett) value is the resultant amount after accounting for the sum or difference of two or more variables. In economics, it is frequently used to imply the remaining value after accounting for a specific, commonly understood deduction. In these cases it is contrasted with the term gross, which refers to the pre-deduction ...
Net income can also be calculated by adding a company's operating income to non-operating income and then subtracting off taxes. [4] The net profit margin percentage is a related ratio. This figure is calculated by dividing net profit by revenue or turnover, and it represents profitability, as a percentage.
NDP: Net domestic product is defined as "gross domestic product (GDP) minus depreciation of capital", [6] similar to NNP. GDP per capita: Gross domestic product per capita is the average market value rendered per person. GNI per capita: Gross national income per capita is related to average income per person and mean income.
Another distinction is between net and gross return. The 'pure' net return to the investor is the return inclusive of all fees, expenses, and taxes, whereas the 'pure' gross return is the return before all fees, expenses, and taxes. As a result, gross returns will be greater than net returns. Various variations between these two extremes exist.