1. Finance
  2. Financial Statements

Net Profit

Money

The amount of money the company retains after all its expenses, including financial costs and taxes, have been paid. Represents the bottom line and is a clear indicator of a company's overall financial health.

Formula

Total Revenue - Total Expenses

Example

If a company's total revenue is $1,000,000 and total expenses are $800,000, the net profit is $200,000.