what is the difference between gross profit and net profit 
gross profit measures a company s total sales revenue minus the total cost of goods sold or services performed net profit margin also subtracts other expenses including overhead debt repayment and taxes net profit is considered a company s bottom line the bottom linethere are many different metrics that analysts and investors can use to help them determine whether a company is financially sound one of these is the profit margin which measures the company s profit as a percentage of its sales in simple terms a company s profit margin is the total number of cents per dollar that a company receives from a sale that it can keep as a profit the most common and widely used type of profit margin is net profit margin which accounts for all of a company s costs both direct and indirect 