Company’s profitability as a percentage of gross profit. Calculation is gross profit divided by revenue.


The gross earnings of a business or company are the total receipts before deducting expenditures. Net earnings are the excess of the gross earnings over the expenditures defrayed in producing them, and aside from and exclusive of capital laid out in constructing and equipping the works or plant. State v. Railroad Co., 30 Minn. 311. 15N. W. 307; People v. Roberts, 32 App. Div. 113, 52 N. Y. Supp. 859; Cincinnati, S. & C.It. R. Co. v. Indiana. B. & N. Ity. Co., 44 Ohio St. 287, 7 N. E. 139; Mobile & O. R. Co.v. Tennessee. 153 U. S. 480. 14 Sup. Ct. 90S. 38 L. Ed. 703; Union Pac. R. Co. v. U. S.,99 U. S. 420, 25 L. Ed. 274; Cotting v. Railway Co., 54 Conn. 150, 5 Atl. 851.
Lease type. The tenant. or lessee, is accountable only for a fixed fee or rent. The owner pays all other expenses, service fees, and taxes. Insurance, maintenance, and taxes are examples of expenses. Garbage collection, security, and utilities are examples of fees on a leased property. An operating lease is a gross lease whereas a capital lease is not. Also refer to net lease.