How do you calculate net profit if you only have assets and liabilities?
submitted by Mary

Kelly Blue

To determine net profit when you only know the assets and liabilities you'd still need additional information like revenues and expenses.

I guess if you're trying to estimate, remember that net profit isn't directly calculated from assets and liabilities alone. Net profit = total revenues - total expenses, which affect the equity section, not just assets and liabilities.

Dr. Greenthumb

You can't really find net profit just from assets and liabilities because net profit depends on income and expenses.

If you know how much the assets increased and liabilities decreased, you might get a rough idea of profit.

Julia

You don't really have enough info to do that. However, you could get a rough idea by subtracting a change in your liabilites from a change in assets during a certain period. But this is a only rough estimate because assets and liabilities alone don't give the full picture. Especially without income statement details.