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gross profit
This term is a specific accounting metric used to evaluate the efficiency of a company's production or procurement process. It represents the most basic level of profitability, focusing solely on the direct costs of producing a product or delivering a service without accounting for overhead, administration, or financing costs.
In professional financial reporting, it is distinguished from net profit, which is the final "bottom line" after all expenses are deducted. Using "gross profit" when "net profit" is intended can lead to significant misunderstandings regarding a company's actual viability or take-home earnings.
Meanings
The total amount of revenue remaining after subtracting the cost of goods sold, but before deducting other operating expenses, taxes, and interest.