Income minus expenditure equals profit.
Other basic calculation methods of profit:
Operating profit = operating income-operating costs-business taxes and surcharges-sales expenses-management expenses-financial expenses-asset impairment loss+fair value change loss (-fair value change loss)+investment income (-investment loss).
Operating income: refers to the total income recognized by various businesses of an enterprise, including main business income and other business income.
Operating costs: refers to all the actual costs incurred by an enterprise in operating its business, including the main business costs and other business costs.
Asset impairment loss: the loss caused by the enterprise's provision for asset impairment.
Gains (or losses) from changes in fair value: gains (or losses) from changes in fair value that should be included in current profits and losses, such as trading financial assets of enterprises.
Investment income (or loss): the income (or loss) obtained by enterprises investing abroad in various ways.
Total profit = operating profit+non-operating income-non-operating expenditure.
Non-operating income: various interests that are not directly related to the daily business activities of an enterprise.
Non-operating expenses: losses incurred by an enterprise that are not directly related to its daily business activities.
Net profit = total profit-income tax expense.