{"id":22570,"date":"2020-04-08T11:58:29","date_gmt":"2020-04-08T11:58:29","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/gross-profit\/"},"modified":"2024-12-23T09:22:01","modified_gmt":"2024-12-23T09:22:01","slug":"gross-profit","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/gross-profit","title":{"rendered":"Gross Profit"},"content":{"rendered":"<p>What is the meaning \/ definition of <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\">Gr<\/a>o<a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\">ss Profit<\/a> in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>Gross Profit is the profit a company makes after deducting the costs of production (or the costs that allow the services to take place) from the net sales amount. Gross Profit is also called <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\">sales profit<\/a>, <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\">sales credit<\/a> or <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\">gross income<\/a>. It only takes into account variable costs and disregards <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/fixed-costs\">fixed costs<\/a> such as building rent, marketing expenses, salaries etc.<\/p>\n<p>Gross Profit will appear on a company\u2019s income statement and is a company\u2019s profit before operating expenses, interest payments and taxes. It can be calculated as below:<\/p>\n<p><strong>Formula:<\/strong><\/p>\n<p style=\"text-align: left;\">Gross Profit = Revenue \u2013 <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\">Cost of Goods Sold<\/a><\/p>\n<p style=\"text-align: justify;\"><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-revenue\">Gross Revenue<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/fixed-costs\">FC \u2013 Fixed Costs<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gop-gross-operating-profit\">GOP \u2013 Gross Operating Profit<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms:<\/strong><\/p>\n<ul>\n<li>Sales Profit<\/li>\n<li>Sales Credit<\/li>\n<li>Gross Income<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Gross Profit in  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[38,9],"tags":[],"class_list":["post-22570","post","type-post","status-publish","format-standard","hentry","category-g","category-glossary"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gross Profit Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: Gross profit: The profit a company makes after deducting the costs of production (or the costs that allow the services to take place) from the net sales amount.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gross Profit Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: Gross profit: The profit a company makes after deducting the costs of production (or the costs that allow the services to take place) from the net sales amount.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/gross-profit\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-08T11:58:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:22:01+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/gross-profit#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/gross-profit\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Gross Profit\",\"datePublished\":\"2020-04-08T11:58:29+00:00\",\"dateModified\":\"2024-12-23T09:22:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/gross-profit\"},\"wordCount\":129,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"G\",\"Hotel Terminology &amp; 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