Gross
profit – is the revenue
minus the direct costs.
|
Sales
revenue
-
Costs of sales
=
Gross Profit
|
Operating
profit – is the gross
profit minus the indirect costs.
|
-
Overheads
=
Operating profit
|
Pre-tax
profits – the operating
profits plus any one-off items, e.g., redundancy payments.
|
+
One-off items
=
Pre-tax profits
|
Profits
after tax – the profit that
is left after corporation tax has been paid.
|
-
Tax
=
Profits after tax
|