Tag: profit

What is Net Profit Percentage?

Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales after all expenses, excluding/including tax Higher the Net Profit %, the higher the profitability, after expenses

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What is Gross Profit Percentage?

Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the profitability of business, after direct costs

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What is Net Profit?

Gross Profit Less Operating Expenses  = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses, available to the owners of the business  

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What is Gross Profit?

Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs of making a product  

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What is Break Even?

Break Even Break Even is point where sales – expenses = 0  It is calculated in units & R. It can take months or years to reach break even. Break Even helps determine when business will reach 0 & thereafter show a profit

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What is Sweat Equity?

Sweat Equity, is where the entrepreneur  Contributes time & effort, your “sweat” Contributes knowledge, skills & connections

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What is Owner’s Equity?

Owner’s Equity Owner’s Equity = Capital Contribution + Changes below Owner’s Equity Computation Capital contribution by the owner + Net Profit – Net Loss – Owner Drawings = Owner’s Equity

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