Difference Between Net Income and Net Profit

Key Difference – Net Income vs Net Profit

The difference between net income and net profit can be quite confusing since both these terms are often used interchangeably. However, it is important to understand different components that are included in each of these concepts since both provide various indications.The key difference between net income and net profit is thatnet income is the funds available for shareholders after tax, while net profit is the actual total profit earned by the company.净利润计算包括所有运营和非运营收入和费用。

内容
1.Overview and Key Difference
2.What is Net Income
3.What is Net Profit
4.年代ide by Side Comparison – Net Income vs Net Profit
5.概括

What is Net Income?

Net income is the profit available for company’sshareholders税收后。因此，它也称为税后的利润（PAT）或净收入。换句话说，这是股东的净增加equity。Net profit will be used to paydividendsto shareholders and/or transferred to earnings reserved.

Net income is a very useful aspect as it is used to calculate two main financial ratios. They are,

每股收益(EPS)

Governed by IAS 33, this is the amount of net income earned per share of stock outstanding and is calculated as per below.

EPS= Net income / Number of average shares outstanding

Higher the EPS, the better; since it indicates that company is more profitable and the company has more profits to distribute to its shareholders.

股权回报（ROE）

ROE expresses how much profit is earned for each unit of shareholder equity; thus a good ROE is an indication that the company is utilising shareholder funds efficiently and is calculated as below.

ROE= Net income / Average shareholder equity *100

What is Net Profit

简单地说，可以将净收入总结为总收入总费用的总和，因此，这是公司所获得的实际利润。净收入表明公司的财务稳健性。如果总支出超过总收入，则公司将造成净亏损。

在计算净收入时，应考虑以下内容。

Revenue

Income earned by conducting company’s main business activity

出售商品成本（COGS）

一开始的商品成本存货plus the net cost of goods purchased minus the cost of goods in its ending inventory.

Gross Profit

毛利润是销售商品成本减少的收入，由Gross Profit margin（GP利润）。这表明覆盖出售商品成本后剩余的收入百分比。GP利润率更高，进行主要业务活动的效率较高。

Gross Profit margin= Gross Profit / Revenue *100

营业费用

Operating profit/ Earnings before interest and tax

这是毛利较少的运营费用。Operating profitis an important measure of efficiency since it demonstrates how profitable the core business activity is. This is measured by the Operating profit margin ratio (OP margin).

营业利润率=营业利润/收入 *100

利息花费

Interest paid on debt finance such as loans

利息收入

现金存款或类似投资收到的利息

Tax

Compulsory payment levied by the government

Net Profit margin (NP margin) is calculated using this final profit figure and is an indication of value generation by the company.

Net Profit margin= Net Profit/ Revenue *100

What is the difference between Net Income and Net Profit?

净收入与净利润
所有付款后，公司的股东都可以利润。	净利润是指总收入减去总支出。
Usefulness
This indicates total profitability	这表明股东价值的一代。
Ratios
Net income is used to calculate GP margin, OP margin and NP margin.	净利润用于计算EPS和ROE。

概括– Net Income vs Net Profit

The difference between net income and net profit should be clearly distinguished in order to understand the effects of one another. Operational efficiency should be increased by minimising costs and wastage in order to increase the net profit. Since the main contributing factor for the difference between net income and net profit is a tax, which is not controllable by the company, the measures taken to improve net profit will also result in net income growth.

Reference:
1.“税后净收入和净利润有什么区别？”chron.com。N.P.，N.D。网络。2017年2月6日。
“Operating Income.”Investing Answers。N.P.，N.D。网络。2017年2月6日。
“IAS Plus.” IAS 33 –每股收益。N.P.，N.D。网络。2017年2月6日。
Fuhrmann，CFA Ryan C.“您如何计算股本回报率（ROE）？”Investopedia。N.p., 30 Dec. 2015. Web. 06 Feb. 2017.
“Financial Ratio Analysis | Example.”我的会计课程。N.P.，N.D。网络。2017年2月7日。

Images:
1.“税收”(CC BY-SA 2.0)via401kcalculator.org.