What is Net Profit in Retail? Explained

Net Profit is the amount of money a company has left after deducting all its expenses from its total revenue. It is a key indicator of profitability and financial performance. The net profit is calculated by subtracting the total expenses (including operating costs, taxes, interest, and other deductions) from the total revenue. A positive net profit indicates that the company is earning more than it is spending, while a negative net profit suggests a loss. Monitoring net profit is crucial for businesses to assess the effectiveness of their operations and overall financial health.