Profit 

Profit is the financial gain a business achieves when its total revenue exceeds its total expenses, taxes, and costs over a specific period. It’s a core measure of a company’s financial health and operational efficiency. 

There are several types of profit: 

• Gross Profit: Revenue minus Cost of Goods Sold (COGS). 

• Operating Profit (EBIT): Gross profit minus operating expenses. 

• Net Profit (Net Income): Operating profit minus interest, taxes, and other expenses. 

Formula (Net Profit):  Net Profit = Total Revenue - Total Expenses 

Profit serves as a foundation for financial decisions, dividend payouts, reinvestment strategies, and company valuation.