Profit, also known as net income or earnings, is a financial measure that represents the amount of money a company earns from its operations after deducting all expenses, taxes, and interest. It is a key indicator of a company’s financial performance and is often used to assess its profitability.

Profit is calculated by subtracting the total expenses from the total revenue generated during a specific period. The formula for calculating profit is as follows:

Profit = Total Revenue – Total Expenses