After every expense has been subtracted, what remains is net profit. It is the bottom line of the income statement—revenue minus cost of goods sold, operating expenses, interest, taxes, and any other costs. Positive net profit means the company earned more than it spent during the period; negative net profit is a net loss.

Net profit is the most comprehensive measure of profitability because it includes all costs. It is the amount available for reinvestment, debt reduction, or distribution to owners. Analysts examine both the absolute amount and the net profit margin (net profit divided by revenue) to assess performance and trends.

Because net profit can be affected by one-time items, accounting choices, and non-operating gains or losses, readers often look at related measures such as operating profit or adjusted earnings for a clearer view of ongoing performance. Still, net profit remains the headline number that many stakeholders watch most closely.