Gross Profit calculations depend on accounting treatment of various expenses. In other words; policies and professional judgement about what expenses are administrative expenses vs Cost of Sales. This judgement could influence the final Gross Profit. Net Income does not, as it is the simple summation of all expenses and revenue in a period.
Gross Profit will always be a higher number than Net Income. Starting from Gross Profit, you must subtract all other operating expenses (which reveals Operating Income). Then, subtract all non-operating expenses, such as interest expenses, tax expenses and other expenses to arrive at the Net Income (the bottom line).
When asking the question “if the company sells more volume or increases prices, will it be more profitable?” – a low or negative Gross Profit suggests that no matter the revenue increase, the company will struggle. Basically, comparing Gross Profit vs Net Income is useful to answer the question “is this company efficient/lean?” A high gross profit and low net income could indicate that the company could be overspending on non-essential items. A keen financial analyst will examine to what extent the company is spending on growth vs. inefficient operations.