Morale Boost / Reason to keep Fighting

[Segev]

I stand corrected! Thank you for confirming and backing up your report. (Sadly, "your anonymous sources" will always leave naysayers room to work, but I am willing, at least, to take your word for it on this. For whatever my willingness to trust you is worth.)

[downix]

Don't you mean gross revenue?

gross profit =gross sales - manufacturing costs. As NCSoft no longer manufactures boxes for the game there is minimal manufacturing costs to deduct from revenue.

[Segev]

So gross profit differs from net profit by the value of overhead?

[downix]

So gross profit differs from net profit by the value of overhead?

No, gross profit becomes Operating Profit once you subtract overhead. It becomes net profit after taxes and interest are deducted.

[downix]

Just to make this a bit easier, wikipedia (I *honestly* hope that this is correct), clarifies a bit here

Net Sales - Cost of Goods sold = Gross profit
Gross Profit -  SG&A (Selling, General and Administrative Expenses (combined costs of operating company)) = Earnings before interest, taxes, depreciation and amortization (EBITDA)
EBITDA - Depreciation & Amortization = Earnings before Interest and Taxes (EBIT)
EBIT - Interest Expense (cost of borrowing money) = Earnings Before Tax (EBT)
EBT - Tax Expense = Net Income aka Net Profit.

(source: Wikipedia)

I hope that this explains how many steps (and the order) that you go through to get to net profit.

That mirrors what I recall from working for Ron.

[Codewalker]

Net Sales - Cost of Goods sold = Gross profit

And in general, COGS is the cost of raw materials for a manufacturer, or the cost of merchandise for a reseller.

For a service company, it's typically 0.

[Codewalker]

Sounds about right. Most companies that I'm aware of tend to focus on EBIT more than any other number, since that does include G&A expenses and other overhead.