What is the difference between NOR and Net Profit?

Follow

Haimei Li

July 12, 2023 19:47

NOR = Gross revenue - project-related expenses

Net Profit = Revenue – (Direct Labor Expenses + Indirect Labor Expenses) + Miscellaneous revenue

 

Are there any actual differences? 

Also, I wonder if there is any difference between Profit v.s. Net Profit...

 

Thank you

0

• 

  Valerie Galchenko July 13, 2023 14:07

  (Gross) profit is revenue prior to substracting any expenses, tax, and interest.

  (Net) profit is the remaining income of the company after paying all costs incurred by the company, including all expenses, tax, and interest.

  0

  Comment actions Permalink
• 

  Michael Ermann July 16, 2023 14:46

  NOR is what you have left after your client pays you and you’ve subtracted plotter expenses travel expenses and that 200k payment to your MEP engineer…it’s the revenue after external, reimbursable, project related expenses that you have to work with when running your business.

  Net profit is is what you have left after your client pays you and you’ve subtracted plotter expenses travel expenses and that 200k payment to your MEP engineer…AND subtracted what you paid the draftsman who worked on that project, the marketing dept for winning the project, the health insurance for the principal, and the cost of repairing the plotter when it broke last month…it’s what you have in your pocket after all expenses as the owner of a firm. It’s the profit.

  It may be a bit easier to understand when thinking about a store that sells sweatshirts…net operating revenue is what’s left over after you pay the sweatshirt manufacturer….net profit is what’s left over after ALL your expenses.

  0

  Comment actions Permalink

Please sign in to leave a comment.