Accounting profit, calculated as revenue minus all costs, directly impacts stock prices. Economic profit includes opportunity cost, providing deeper insight into resource utilization. Cash flow, often ...

Economic profit contrasts from net income by subtracting both usual costs and missed alternative profits. Short-term economic losses may lead to long-term gains if underlying business strategies ...

Your business's income statement is a long string of pluses and minuses. You start with your sales revenue, subtract costs of goods sold to get gross profit, then subtract expenses to get net profit.