Net revenue and Gross profit
Net revenue and gross profit are both important financial metrics that used to measure the financial performance of a business. However, they represent different aspects of a company’s financial picture.
Net revenue is the total amount of revenue earned by a business after deducting any discounts, returns, and allowances from the gross revenue. It represents the actual amount of money the business has earned from its operations.
On the other hand, Gross profit is the revenue earned by a business minus the cost of goods sold (COGS). It represents the amount of money left over after deducting the direct costs associated with producing and selling the goods or services.
In simple terms, Net Revenue is the top line of a company’s income statement, while later one is the amount left over after deducting the cost of producing the goods or services.
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