Profit vs. Cash Flow: Key Differences Explained (With Examples)
- Gross Profit: This is the revenue minus the cost of goods sold (COGS). It shows how much money is made after covering the direct costs of producing or purchasing goods.
- Operating Profit: Also known as EBIT (Earnings Before Interest and Taxes), this shows the profit after covering both direct and indirect costs but before paying interest and taxes.
- Net Profit: The final profit after all expenses, including operating costs, interest, taxes, and any other costs, have been deducted from revenue.
Leah Tran
Content Executive at TrueProfit & eCommerce Content Specialist
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
