Net Profit

Net profit, also known as net income or the bottom line, is the amount of income that remains after all expenses, taxes, and costs have been deducted from total revenue. It represents the profitability of a company after accounting for all expenses and is a key indicator of a company's financial health. A positive net profit indicates profitability, while a negative net profit (net loss) means the company is losing money.

Example

A company generates $500,000 in revenue and incurs $400,000 in expenses, leaving a net profit of $100,000 for the period.