Gross profit and net profit are two critical financial metrics that can unlock your business’s success when understood properly. Gross profit is the amount left after subtracting the cost of goods sold (COGS) from total revenue, highlighting how efficiently a company produces or sells its products. On the other hand, net profit is the final earnings after deducting all expenses, including operating costs, taxes, and interest, giving a true picture of overall profitability. While gross profit helps businesses evaluate pricing strategies and cost efficiency, net profit determines financial health and long-term sustainability. Mastering these differences empowers businesses to make smarter financial decisions and maximize profitability.

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