Gross profit is the amount that expresses the amount left after subtracting the total sales price of goods and services from a business’s sales. This amount does not include the expenses of the business for production, sales, and marketing. Gross profit is used to measure the financial performance of the business and usually shows how much of the business’s sales are profitable. Gross profit can be higher than net profit, because net profit takes into account all expenses of the business (overheads, tax expenses, etc.)

Profit ratio is a ratio that is calculated as the percentage of a business's net profit to its sales. The profit ratio is an important tool for evaluating a business's financial performance and is generally calculated for a periodic time period (year, quarter, month, etc.).

Profit margin is a ratio that is calculated as the percentage of a business's net profit to its sales. Profit margin is an important tool for evaluating a business's financial performance and is generally calculated for a periodic time period (year, quarter, month, etc.).