The utility is the interest or advantage You get something. The concept comes from Latin useful, which means "quality of useful." Specifically, we can add that it is made up of the following parts: "uti", which is synonymous with "being able to be used"; "-Ilis", which is indicative of "possibility" and the suffix "-dad", which is equivalent to "quality". This term has a wide use in the field of economy and the finance to name the profit that is achieved from a good or one investment .
This means that if a person invests $ 1,000 in the purchase of clothing that he then resells for a total of $ 1,500, he will have achieved a profit of $ 500 in the operation.
Net , on the other hand, is an adjective that is used to mention a resulting and clean amount (in the sense of being well defined). In addition to the above we can determine that it is a word that has its etymological origin in French. Thus, we discover that it emanates from the word "net", which can be translated as "spotless, clean".
The net profit Well, it's the profit that is obtained after making the corresponding discounts . It is about the concrete utility, that the subject or the company Receive in hand.
For example: a company makes the monthly balance with a record that indicates income per 100,000 pesos. Said money has effectively entered the coffers of the company, but that does not mean that everything is profit. The company also has expenses to bear, such as paying taxes, buying raw materials, etc. Net income will be the amount that results from subtracting these expenses from income. If the entity had expenses for 60,000 pesos, the net profit for the period was 40,000 pesos (100,000 pesos of income minus 60,000 pesos of expenses).
This allows to infer that a company can increase its net profit without increasing its income, since it would also achieve it if it manages to cut its expenses.
Sometimes net profit is often confused with gross profit, but it must be clear that they are different. Thus, the latter could establish that it is the one obtained from subtracting the income of a company from the sale of services and goods, which would be the money it costs to produce those.
This cited gross profit also does not make use of general expenses or financial costs, such as interest payments established on debts or taxes.
Both one type of utility and another is important to establish that they are vital when it comes to determining the success of a company in question. In the same way, they are also used to show the vulnerability of any entity. Specifically, when we say vulnerability we are referring to the capacity that can have to cope with each and every one of the effects, adverse or not, that may occur at a particular time and among which situations would be encountered. of crisis