Net Profit Total Revenue

Total Expense

Total Revenue
Total Expense

The net profit is the amount of money a business earns after deducting all expenses over a specific period of time.

To calculate net profit you should use the following formula:
net profit = total revenue - total expense

The net profit is used in order to to help decide when and how to work towards expanding a business and when to reduce the expenses.

Other people also used:

It's the firm's revenue after making several deductions such as discounts and returns.

It's a measurement of the net cash generated from the core functions of a company within a specified time period.

It's the expenditure incurred by administration, quality and marketing to turn a raw material into a finished product.

It's a measurement of how cost-efficient a company is by comparing it's oerating costs to it's sales.