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Gross and net profit are each their own concept: https://www.investopedia.com/ask/answers/101314/what-are-differences-between-gross-profit-and-net-income.asp ht

• bigstrat2003 2y ago
  What they call "gross profit" is not profit, by definition. It's certainly useful to track $revenue-$cost_of_goods, but you can't call that profit. People are free to use words incorrectly, but they shouldn't expect anyone else to go along with them.
  • ActivePattern 2y ago
    Who chooses the "correct" use of words? Is it you? Wikipedia disagrees with you: https://en.wikipedia.org/wiki/Gross_margin https://en.wikipedia.org/wiki/Gross_margin. Maybe you should make your own encyclopedia.
    • colecut 2y ago
      you mean some person on wikipedia disagrees with him.
      • chgs 2y ago
        And hsbc https://www.business.hsbc.uk/en-gb/insights/starting-a-business/gross-profit-vs-net-profit https://www.business.hsbc.uk/en-gb/insights/starting-a-busin... And sage https://www.sage.com/en-us/blog/glossary/what-is-gross-profit/ https://www.sage.com/en-us/blog/glossary/what-is-gross-profi... And the uk education system https://www.bbc.co.uk/bitesize/guides/zd2fpg8/revision/1 https://www.bbc.co.uk/bitesize/guides/zd2fpg8/revision/1
    • IIsi50MHz 2y ago
      "Gross margin" seems a suitable alternative term.
  • mlyle 2y ago
    What they call "gross profit" is an accounting standard, defined in GAAP, and a standard part of every financial statement. If we're talking about profit from the lens of a unit sale, we're usually talking about gross profit and gross margin.